In forex, a forward contract is a non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed upon today. The forward price is the price agreed upon today for delivery at a future date, and is determined by the prevailing spot price adjusted for any carrying costs such as interest or storage costs. Forward contracts are often used to hedge against price fluctuations in the underlying asset, or to speculate on the direction of future prices. They differ from futures contracts, which are traded on organized exchanges and are standardized in terms of contract size, settlement dates, and delivery locations.