Trending February 2024 # What Is& Should You Disable It? # Suggested March 2024 # Top 10 Popular

You are reading the article What Is& Should You Disable It? updated in February 2024 on the website We hope that the information we have shared is helpful to you. If you find the content interesting and meaningful, please share it with your friends and continue to follow and support us for the latest updates. Suggested March 2024 What Is& Should You Disable It?

What is chúng tôi & Should You Disable it? Disabling it isn’t recommeded for those who use pen-enabled devices




Although chúng tôi is a legitimate Windows file, it may cause a number of issues.

Terminating it with Task Manager won’t do as Windows automatically restores it in a reboot.

To disable it, you can use the Local Group Policy Editor or Command Prompt.



To fix Windows PC system issues, you will need a dedicated tool

Fortect is a tool that does not simply cleans up your PC, but has a repository with several millions of Windows System files stored in their initial version. When your PC encounters a problem, Fortect will fix it for you, by replacing bad files with fresh versions. To fix your current PC issue, here are the steps you need to take:

Download Fortect and install it on your PC.

Start the tool’s scanning process to look for corrupt files that are the source of your problem

Fortect has been downloaded by


readers this month.

Many users have reported that the chúng tôi process has caused problems for their OS, including consuming high memory. This begs the question of whether it’s safe to remove it because it’s a Windows component.

If you’ve also run into the same issue, keep reading for some effective solutions.

What does chúng tôi do?

The chúng tôi system file is an abbreviation for Windows Ink Services Platform Tablet Input Subsystem. It’s part of the Windows Ink Workplace, the service enabling handwriting on office and note-taking software.

The executable gets automatically installed along with any Microsoft Office, Adobe, or Journal viewer software.

Is chúng tôi safe?

The chúng tôi file is a legitimate Windows one. However, that doesn’t mean it can’t damage your computer. The problem with the file is that it remains active in the background even when no touch screen or pen input is available or used by the system.

This consumes many system resources, slows your CPU, and can even harm other software. So, while it might be safe to stay, as it’s a legitimate file, do you even need it on your PC?

Disabling it isn’t recommended for most users, especially touch screens and pen-enabled devices. The executable’s vital for the optimal performance and functionality of note-taking, drawing, or design apps.

However, if you do not own such a device or do not intend to use any pen input component, disabling the process might free up some valuable system resources and positively impact your PC performance.

You can terminate the chúng tôi process from Task Manager, but this is just a temporary solution. Windows is set to automatically restore it every time you reopen an app that needs it or reboot your computer.

Scroll down below for some effective solutions to ensure that chúng tôi remains disabled.


Keep in mind that disabling it may render certain features of apps, such as Microsoft Office, Snipping Tool, and Adobe, unusable.

How can I stop wisptis.exe? 1. Disable the process from auto-start using Command Prompt 2. Disable the App-V client

Keep in mind that if disabling the App-V client harms your computing experience, you can re-enable it by following the steps above, but this time choosing Automatic under Startup type, followed by another restart.

3. Use the Local Group Policy Editor

So that’s how you disable the chúng tôi process. Additionally, you may disable the entire Windows Ink Workplace feature.

Still experiencing issues?

Was this page helpful?


Start a conversation

You're reading What Is& Should You Disable It?

What Is Signal App’s Stock Name? What Is Signal Advance?

Since last week there has been a massive spike in the stock of a company following a Tweet from one of the richest people in the world. The stocks for the Signal Advance soared by 11,708% within days. The micro-cap stock’s value rose from $0.60 to $70.85 since the big swell. The company’s market capitalization went from $6 million to nearly $300 million.

Before you start thinking about investing, you need to know that Signal Advance is not the company that Elon Musk had in fact mentioned. Here is the saga of an epic mix-up that has continued to increase the stock of the small technology company.

Why are people looking to invest in the Signal app? 

Use Signal

— Elon Musk (@elonmusk) January 7, 2023

The SpaceX founder had meant to tell his 42 million Twitter followers to start using the E2E encrypted messaging app Signal. Instead, a large number of people thought that Musk was referring to the small medical technology company Signal Advance. 

The incident is similar to that of the Zoom Video Communications and Zoom Technologies mix-up last year. 

So, due to the mention by the business magnate the wrong company has attracted the attention of investors. 

Looking for the right stock name so that you do not end up investing in the stock that has nothing to do with Musk’s mention? Well, we have a bit of bad news for you…

What is the Signal app’s stock name?

The stock name of Signal Advance is SIGL. And what about the Signal app from Musk’s Tweet?

There is no public stock for the Signal app that you can invest in!

The Signal app is an encrypted messaging service developed by the Signal Foundation and Signal Messaging. The 501c3 company is a non-profit that is not listed on any stock market. Thus, there really is no share available for the public to purchase. 

Signal app tried to provide some clarity on Twitter by pointing out that they had noticed the spike in Signal Advance’s stock value but they were not associated with the company. 

What can I do to support the Signal App? 

If you follow what Musk has to say and want to support the platform that he mentioned then investing in stocks is not the way to go. 

In response to a Tweet, Musk said that he had donated to the Signal App already and would be donating more:

Already donated to Signal a year ago. Will donate more.

— Elon Musk (@elonmusk) January 11, 2023

Musk in an older Tweet has spoken about knowing where to donate:

Btw, critical feedback is always super appreciated, as well as ways to donate money that really make a difference (way harder than it seems)

— Elon Musk (@elonmusk) January 8, 2023

So, you can follow the billionaire’s example and donate to the Signal app. 

How to donate to the Signal app

Donating your money in support of the Signal app is pretty simple. 

You need to go to

On the site, you will get the option of a one-time donation or a monthly donation. 

Once you select the option you can either select the preset amounts starting from $3 to $100, or you can enter the amount you want to donate. 

Note: Donors from certain parts of the world can donate in their own currency by changing the default USD option to their currency from the drop-down menu. 

By pressing Next you will be taken to the page where you have to enter your personal information. You simply have to enter your name and email address. Here you can even choose to donate anonymously. 

The final step is to enter your payment details. 

To make the payment you can either pay with your credit/debit card, PayPal, or Google Pay account. 

If you have chosen the monthly donation option then the donation amount will get deducted from your account every month. 

What is the Signal Advance?

Now that you know that you cannot invest in the Signal App are you still curious about SIGL stock?

Signal Advance and the Signal app are as alike as chalk and cheese. 

While the Signal app helps users keep their communication private, Signal Advance develops and manufactures sensors that are used for medical and industrial purposes. The niche manufacturing company was founded in 1992. On their website, the company has details of its technology and its applications. 

Elon Musk’s Signal tweet had nothing to do with the Signal Advance company. As the Signal app is not listed, investors found the stocks of the other company and started investing by mistake. This does not seem to have deterred investors even after the Signal app’s tweets. 

Update: Although the growth rates may look similar, this stock symbol still has absolutely nothing to do with us.

— Signal (@signalapp) January 11, 2023

Is it worth investing in Signal Advance?

So, what if Singal Advance is not the Signal of Musk’s tweet! Should I not jump on the bandwagon and invest in it anyway? 

On Monday SIGL shares saw a nearly 400% surge. However, there has been somewhat of radio silence from Signal Advance over the mix-up. If you are planning on investing in the company then tread carefully. Do your research on the value of the stock. You can also wait for the hype to subside and then see how the stock is doing before you do finally invest. 

Are you willing to donate to the Signal app or invest in Signal Advance? What are your thoughts on the mix-up? 

What Is A Pronoun?

A pronoun is a word that stands in for a noun, often to avoid the need to repeat the same noun over and over. Like nouns, pronouns can refer to people, things, concepts, and places. Most sentences contain at least one noun or pronoun.

People tend to use “pronouns” to mean personal pronouns specifically, but there are many other kinds of pronouns that are just as important to English grammar. The words highlighted in bold below are all pronouns.

Examples: PronounsI asked her if the headphones were hers, but she said they belonged to someone else.

It might rain tomorrow, but there isn’t much we can do about that.

These are the days that I like best.

Which of them do you prefer? Help yourself to whichever you like.

How are pronouns used in sentences?

The main function of pronouns is to replace nouns. Because of this, they are used in sentences in similar ways to nouns.

Like nouns, pronouns commonly serve as the subject of a sentence, followed by a verb (a word expressing an action).

Examples: Pronouns as subjects



to play chess.

We have never been to Germany before.

It is difficult to stay calm in stressful situations.

A pronoun can also function as the object in a sentence—either a direct or indirect object:


direct object

is something or someone that is directly acted upon by the verb.


indirect object

is someone or something that receives the direct object.

Examples: Pronouns as direct and indirect objectsGive




Can you promise her this?

NoteA noun phrase is a noun or pronoun in combination with any determiners applied to it. Despite the name, noun phrases can just as well consist of pronouns as of nouns.

For example, the sentence “You and I saw someone else” contains two noun phrases, both headed by pronouns: “you and I” and “someone else.”

Pronoun antecedents

The antecedent of a pronoun is the noun that it refers back to. It’s usually mentioned in the text before the pronoun, but sometimes it comes just after it in a sentence. The antecedent may also be something the person you’re speaking to said. Pronoun-antecedent agreement means ensuring that the pronoun you use matches its antecedent in number, person, and gender.

Examples: Pronouns and antecedents


was late to class again because


missed the bus.

As they debated the point, the students became increasingly animated.

Person A: What do you think of Julian?

Person B: I don’t like him very much.

When you use any type of pronoun, it’s important to ensure that the antecedent is clear and unambiguous. If there is any ambiguity, use the noun instead. For example, below, “it” would be unclear, as it could refer to either the interview or the test.

Example: Ambiguous antecedent

After the interview and the written test were completed,


was checked for incomplete answers.

After the interview and the written test were completed,

the test

was checked for incomplete answers.

Note Some pronouns, such as “you” and “I,” don’t need an antecedent because it’s self-evident to whom they refer.

Pronouns vs. nouns

While pronouns constitute a relatively small class of words that tends not to change over time, nouns are a much broader class that is constantly expanding. Like pronouns, nouns refer to things, people, places, and concepts, but they do so with much greater specificity.

Like pronouns, nouns can function as the head of a noun phrase and as the object or subject of a verb. A complete sentence may consist of just a noun and a verb (“Jeremy spoke.”), just as it could of a pronoun and a verb (“He spoke.”).

Unlike pronouns, nouns are fixed in form—they don’t change spellings depending on their grammatical role in a sentence. For example, while the third-person masculine pronoun “he” becomes “him” when used as an object, the noun “man” doesn’t change.

Example: Nouns in a sentenceDanika went up several flights of stairs to reach the fifth floor, where her office was located.

Pronouns vs. determiners

Many pronouns are closely related to determiners, being spelled similarly (or identically) and expressing related meanings. For example, possessive pronouns like “yours” are closely related to possessive determiners like “your”; and demonstrative pronouns like “that” are identical to the demonstrative determiners.

The grammatical distinction between the two is that pronouns stand on their own as the subject or object of a verb, whereas determiners are only used to modify nouns, not acting as subjects or objects in their own right.

Examples: Pronouns vs. determiners


is a difficult question, but


woman knows the answer.

You have to try their lasagna! I’ve eaten a lot of lasagna in my life, but theirs is the best.

Personal pronouns (first-, second-, and third-person)

Personal pronouns are words like “he” that refer to yourself, the person you’re addressing, or other people and things. They usually refer to an antecedent but may occur without one when the reference is self-evident (e.g., “I” always refers to the person saying or writing it).

Personal pronouns can change their form based on:

Person (first-, second-, or third-person)

Number (singular or plural)

Gender (masculine, feminine, neuter, or epicene)

Case (subject, object, possessive, or reflexive/intensive)

The impersonal pronoun “one” is used in general statements about no particular person. It has fewer forms than the personal pronouns but is otherwise used in the same way.

Download this table

Demonstrative pronouns

The four demonstrative pronouns (this, that, these, and those) are used to indicate something previously mentioned or, in conversation, something that is clear from the context. For example, in the sentence “Take this,” “this” has no explicit antecedent, but it would be clear in context that it referred to whatever object you were being given.

The demonstrative pronouns give information about the relative closeness (literal or figurative) of the things they refer to, especially when they’re contrasted with each other:

The “near” demonstrative this (singular) or these (plural) indicates something close to you.

The “far” demonstrative that (singular) or those (plural) indicates something farther from you.

Examples: Demonstrative pronounsThis is an apple, and those are oranges.

That isn’t fair! I wanted to go first.

Interrogative pronouns

Interrogative pronouns are used (along with other types of interrogative words) to introduce questions. The interrogative pronouns are:

What and which, used to ask questions about things

Who and whom, used to ask about people

Whose, used to ask about ownership

Examples: Interrogative pronounsWhose is this jacket?

What were your favorite classes at school?

Whom do you admire the most?

NoteAll English interrogative pronouns can also function as relative pronouns.

Relative pronouns

A relative pronoun is used to introduce a relative clause—a phrase that usually supplies more information about the preceding noun. They have a lot in common with interrogative pronouns. The relative pronouns are:

Which(ever), that, and what(ever), used in relation to things

Who(ever) and whom(ever), used in relation to people

Whose, used to indicate ownership

Relative pronouns are often omitted in practice (e.g., “the book [that] I read”). There’s nothing wrong with doing this as long as it doesn’t create ambiguity.

Examples: Relative pronounsThe first thing that I thought of was a cloud.

It doesn’t matter whose it was; it’s ours now!

Whoever broke the chair should own up to it.

Indefinite pronouns

Indefinite pronouns are words like “somebody” that refer to an unspecified person or thing. Many of them are formed using some combination of some-, any-, every-, or no- with -thing, -one, -where, or -body.

There are also various indefinite pronouns used to describe quantity, such as “little,” “many,” “none,” and “enough.” And there are distributive pronouns like “neither” and “each” that allow you to distinguish between options.

The impersonal pronoun “one” can also be regarded as indefinite.

Examples: Indefinite pronounsTry to think of somewhere nice to go for dinner.

No one likes him, and he doesn’t like anyone.

Some are born lucky, while others have to work hard for everything they get.

Few are able to excel in such a competitive field.

Reciprocal pronouns

Reciprocal pronouns are used to indicate a reciprocal relationship between two people or things, where the members of a group each perform the same action relative to the other(s). The English reciprocal pronouns are each other and one another.

Some writers claim that “each other” should only be used to refer to groups of two and “one another” to groups of three or more. But this distinction is rejected by most style guides and not borne out in practice; you can use the two interchangeably.

Examples: Reciprocal pronounsSiblings often compete with each other for parental attention.

It’s important that we treat one another with respect.

Dummy pronouns (expletives)

A dummy pronoun (also called an expletive) is a pronoun that doesn’t have any explicit meaning but is necessary to the sentence structure. Unlike other pronouns, dummy pronouns don’t actually replace a noun.

The two words used as dummy pronouns in English are it and there. Note that both words can also fulfill other grammatical roles. Dummy pronouns are commonly used to talk about the weather, to emphasize certain elements in a sentence, or to introduce the existence of something.

Examples: Dummy pronounsIt rained yesterday, but today it’s bright and sunny.

There are thousands of different species of birds in the world.

It isn’t clear to me what you mean.

Other interesting language articles

If you want to know more about nouns, pronouns, verbs, and other parts of speech, make sure to check out some of our other language articles with explanations and examples.

Frequently asked questions Sources in this article

We strongly encourage students to use sources in their work. You can cite our article (APA Style) or take a deep dive into the articles below.

This Scribbr article

Caulfield, J. Retrieved July 10, 2023,

Cite this article


Aarts, B. (2011). Oxford modern English grammar. Oxford University Press.

Butterfield, J. (Ed.). (2024). Fowler’s dictionary of modern English usage (4th ed.). Oxford University Press.

Show all sources (3)

Garner, B. A. (2024). Garner’s modern English usage (4th ed.). Oxford University Press.

What Exactly Is Web 2.0?

What Exactly is Web 2.0?

What is Web 2.0? This is a discussion that now may seem tired – and was vigorously kicked around months and months ago – but I continue to have formal and informal conversations about it. I don’t claim to have any definitive definition but one of Web 2.0’s fundamental tenets is “openness.”

The creation of APIs and the ability of third parties (i.e., outside developers and programmers) to build on top of applications created by search engines, portals and a host of others is one of the core differentiators from “Web 1.0.” (The extension of this to ordinary people, as Microsoft is trying to do with Live Local/Virtual Earth is probably a next phase.)

Indeed, in one sense Microsoft has been doing this sort of thing for years with software and its extended developer community. But the scope of what’s going on now is unprecedented and contrary to dominant corporate culture of only a few years ago. What you see is openness and third-party creativity permitting a kind of acceleration of the next generation of web-based applications.

Yahoo!’s recent Hack Day is a prime example; and it’s willingness to open up the code to Yahoo! Mail may ultimately result in novel tools and applications that the company wouldn’t have been able to develop internally.

As a vaguely related aside, I’ve finally gotten around to reading NY Times reporter John Markoff’s What the Dormouse Said, which was published a couple of years ago and discusses the run up to and development of the PC industry in Silicon Valley. It’s a terrific piece of writing and much more interesting and philosophical than most writing about the computer industry and the Internet.

Related: Here’s more on Yahoo! Hack Day from Michael Arrington at TechCrunch, including the winning all-female team.

What Is The Laravel Hash?

Definition of Laravel Hash

Web development, programming languages, Software testing & others

What is Laravel Hash?

In simple terms, hashing is used as an algorithm or function to map the object data to represent the integer value. The hash function is also used to slender the searches when locating the items of these objects on the data map. For example, developers used to store the data in the hash table, working on the customer record which is in the form of value pairs and keys. Hashing is the method to transform the character string to a minimum constant value or it is similar to a key that directs the actual string. Laravel hash is used to save the password using the hashing process. It uses Argon2 and Bcrypt methods to store the user passwords in laravel hash. If the user starts to work on the application, the starter kit starts to operate and by default, Bcrypt is used to authenticate and register.

Uses of Laravel Hash

The hashing passwords can be called with the make method on the hash table. It is used to adjust the Bcrypt work factor. If the user is working on the Bcrypt algorithm, then the make technique is used to achieve the work factor in the algorithm using the round methods. And by default, the work factor is controlled by Laravel and it is accepted for most applications.

To verify the password that matches the hash value is done by check method. The hash façade enables the user to ensure that the given standard-text string belongs to the given hash.

if ( Hash:: check ('plain-text', $hashed Password)) { } If (Hash:: needsRehash ($hashed) ) { $hashed = Hash:: make('standard text'); }

The user can also create new hashed passwords in laravel by using the Bcrypt option. The syntax to Bcrypt is $password = Hash:: make (‘password’);

It creates the hashed password in the model or controller, then the user can choose it. If the user submits the password via the form with the help of the POST method, then he can hash the password with the below syntax

$ password = Input:: get ( 'password form field'); $hashed = Hash:: make ($password); How to use password laravel hash?

The variable $hashed is comprised of the hashed password where the data can be retrieved from the form which is further validated and again hashed and saved in the database.

In Laravel 5. Version the user can use the below syntax, $ password = bcrypt (‘name 1’);

The other method is to use the artisan tinker in the command prompt.

Open the command prompt window and navigate to the projects present in the root directory.

Navigate to the concerned directory by typing in the search window.

Echo hash:: make ('some string name');

It shows the hashed password in the console. Now the user can copy the required data. The laravel hash gives the secured Bcrypt hashing method to include the space to save the user passwords. If the user has a login controller and register controller class included in the laravel application which automates the Bcrypt for authentication and registration. It is an adaptive choice to hash the passwords as the work factor is flexible.

<?php namespace AppHttpControllers; use Illuminate Http Request; use IlluminateSuppor tFacades Hash; use App Http Controllers Controller; class Update Password Controller extends Controller { /** * Update the password. * * Request $request * @return */ public function update (Request $request) { }

To verify the password check method is implied and the need rehearse function is used to perform rehashing values.


Hence Laravel hash is used to provide the user a strong and secured method to protect the password and has a simple and easy configuration as explained.

Recommended Articles

We hope that this EDUCBA information on “Laravel Hash” was beneficial to you. You can view EDUCBA’s recommended articles for more information.

What Is Head In Git?

What is Head in Git?

Sometimes, you see the Git documentation referring to something called HEAD. For example, The branch should be completely integrated in HEAD. But what exactly is Git HEAD? In this article, we’ll get to know more about Git HEAD but before that let’s just summarize what Git is and what its used for. Git is a tool for distributed control not only used by product managers and developers but also data scientists to manage the source code development of the program and its history.

Start Your Free Software Development Course

HEAD Pointer in Git

Git maintains a variable for referencing, called HEAD to the latest commit in the recent checkout branch. You can imagine HEAD as the “current committed branch”. And we can think of as a pointer, as the purpose of this variable is to point to or act as a reference to a particular commit in the repository. Say, we make a new commit in the repo then the pointer or HEAD is going to move or change its position to point to a new commit.

HEAD points to the starting point of the present branch in the repository at all times. It can be thought of as the last state or the last checked out point in a repository. In other words, the HEAD is a pointer to the next commits’ parent or where the next commit is going to happen as that’s where the repo left off.

A good analogy would be a record player and the playback and record keys on it as the HEAD. As the audio starts recording, the tape moves ahead moving past the head by recording onto it. Stop button stops the recording while still pointing to the point it last recorded and the point that record head stopped is where it will continue to record again when Record is pressed again. If we move around, the head pointer moves to different places, however, when Record is pressed again starts recording from the point the head was pointing to when Record was pressed.

In Git, you can use the command below to see what the HEAD pointer points.

cat .git/HEAD

It shows the contents of .git/HEAD like shown below

It is basically a symbolic reference to the latest committed branch that you checked out and effectively points to the commit at the beginning of the current branch.

Whenever we make a new commit like shown below, it gets added before the current HEAD which makes Git automatically points the HEAD to the new commit.

git diff HEAD..HEAD~3

More precisely, HEAD is a moving pointer that could refer to the current branch, or it couldn’t but it always refers to the “current commit”. It (current commit) is the commit “git commit” is build on top of, and are often compared against “git diff –cached” and “git status”.

git log @

Typing ‘HEAD’ is time taking, especially when there is a shortcut, ‘@’ instead. The symbol ‘@’ is chosen because it naturally follows the [email protected] syntax (e.g. [email protected]{u}), but other than that there’s no reference or operation, and when there isn’t any of those, ‘HEAD’ can be assumed in place of @.

1. Detached HEAD

It is plausible for HEAD to point to a specific change that has not been linked to a branch name yet. This is the situation which is called a detached HEAD and it happens when someone checks out something other than a (local) branch, say a specific commit, a remote branch, or a tag. Detached HEAD, therefore, can be used to checkout a commit that isn’t pointing to the starting point of any existing branch, or to create a brand new commit which isn’t necessarily referenced by a known branch.

Let’s take an example where we checkout commit b in one or the other way

git checkout master^^


git checkout v3.1

Note: that no matter whichever checkout command is used, HEAD will now refer to commit b. This status of b is called as detached HEAD state.

git checkout -b foo

First a new branch named foo is created, which is referred to commit f which in turn updates the HEAD to point to branch foo. This means that it will not be in a detached HEAD state any longer.

git branch foo

This creates a new branch named foo, that is referred to commit f, but the HEAD is left detached.

git tag foo

This too creates a new tag named foo, which is referred to commit f, but the HEAD is left detached.

Suppose, you changed to a position other than commit f, then the object name must be recovered first (typically done by using the git reflog command), and after that, a reference is created to it.

To find out the last two commits HEAD referred to, use either of the below commands:

git log -g -2 HEAD git reflog -2 HEAD 2. ORIG_HEAD

There is one more kind of HEAD that you need to know about. The commands “merge” or “pull” always left the original tip of the current branch in something called ORIG_HEAD. It can be used using the following commands:

git reset --hard ORIG_HEAD

Using this, reset hard brings the index file along with the working tree back to its original state, while resetting the tip of the branch to that commit, but it discards the local changes.

git reset --merge ORIG_HEAD

But what if you want to keep the local changes, in that you can use the above command to keep the local changes.n addition, merge always sets ‘.git/ORIG_HEAD’ to the original state of HEAD so a problematic merge can be removed by using ‘git reset ORIG_HEAD’. In addition to this, merge sets ‘.git/ORIG_HEAD’ to the original state of HEAD at all times so as to remove a problematic merge by using ‘git reset ORIG_HEAD’.

If you face any problem with multiple commits, ORIG_HEAD is set to the starting point of the current branch before applying any patches as an error in the commits can be more easily fixed this way.

Advantages of Git HEAD

It is used to point to the recently committed branch.

It can be used to make changes from the last visited point.

It can also be used to move to different points in history and work from there.

Keeps the repository & process clean and readable.


Git has many uses and is extensively used by developers, product managers, and data scientists. Its commands are very effective and can be very useful. HEAD is a reference to the last commit in the currently checked-out branch.

Recommended Articles

We hope that this EDUCBA information on “What is Head in Git?” was beneficial to you. You can view EDUCBA’s recommended articles for more information.

What Is A Forward Contract?

Forward Contract

An agreement to buy or sell an asset with a pre-specified price and date

Written by

CFI Team

Published January 15, 2023

Updated June 28, 2023

What is a Forward Contract?

A forward contract, often shortened to just forward, is a contract agreement to buy or sell an asset at a specific price on a specified date in the future. Since the forward contract refers to the underlying asset that will be delivered on the specified date, it is considered a type of derivative.

Forward contracts can be used to lock in a specific price to avoid volatility in pricing. The party who buys a forward contract is entering into a long position, and the party selling a forward contract enters into a short position. If the price of the underlying asset increases, the long position benefits. If the underlying asset price decreases, the short position benefits.


A forward contract is an agreement between two parties to trade a specific quantity of an asset for a pre-specified price at a specific date in the future.

Forwards are very similar to futures; however, there are key differences.

A forward long position benefits when, on the maturation/expiration date, the underlying asset has risen in price, while a forward short position benefits when the underlying asset has fallen in price.

How do Forward Contracts Work?

Forward contracts have four main components to consider. The following are the four components:

Asset: This is the underlying asset that is specified in the contract.

Expiration Date: The contract will need an end date when the agreement is settled and the asset is delivered and the deliverer is paid.

Quantity: This is the size of the contract, and will give the specific amount in units of the asset being bought and sold.

Price: The price that will be paid on the maturation/expiration date must also be specified. This will also include the currency that payment will be rendered in.

Forwards are not traded on centralized exchanges. Instead, they are customized, over the counter contracts that are created between two parties. On the expiration date, the contract must be settled. One party will deliver the underlying asset, while the other party will pay the agreed-upon price and take possession of the asset. Forwards can also be cash-settled at the date of expiration rather than delivering the physical underlying asset.

What are Forward Contracts Used For?

Forward contracts are mainly used to hedge against potential losses. They enable the participants to lock in a price in the future. This guaranteed price can be very important, especially in industries that commonly experience significant volatility in prices. For example, in the oil industry, entering into a forward contract to sell a specific number of barrels of oil can be used to protect against potential downward swings in oil prices. Forwards are also commonly used to hedge against changes in currency exchange rates when making large international purchases.

Forward contracts can also be used purely for speculative purposes. This is less common than using futures since forwards are created by two parties and not available for trading on centralized exchanges. If a speculator believes that the future spot price of an asset will be higher than the forward price today, they may enter into a long forward position. If the future spot price is greater than the agreed-upon contract price, they will profit.

What is the Difference Between a Forward Agreement and a Futures Contract?

Forwards and futures contracts are very similar. They both involve an agreement on a specific price and quantity of an underlying asset to be paid at a specified date in the future. There are, however, a few key differences:

Forwards are customized, private contracts between two parties, while futures are standardized contracts that are traded on centralized exchanges.

Forwards are settled at the expiration date between the two parties, meaning there is higher counterparty risk than there is with futures contracts that have clearing houses.

Forwards are settled on a single date, the expiration date, while futures are marked-to-market daily, meaning they can be traded at any time the exchange is open.

Since forwards are settled on a single date, they are not commonly associated with initial margins or maintenance margins like futures contracts.

Although both contracts can involve the delivery of the asset, or settlement in cash, physical delivery is more common for forwards while cash settlement is much more common for futures.

Forward Contract Payoff Diagram and Example

The payoff of a forward contract is given by:

Forward contract long position payoff: ST – K

Forward contract short position payoff: K – ST


K is the agreed-upon delivery price.

ST is the spot price of the underlying asset at maturity.

Let us now look at what the payoff diagram of a forward contract is, based on the price of the underlying asset at maturity:

Here, we can see what the payoff would be for both the long position and short position, where K is the agreed-upon price of the underlying asset, specified in the contract. The higher the price of the underlying asset at maturity, the greater the payoff for the long position.

A price below K at maturity, however, would mean a loss for the long position. If the price of the underlying asset were to fall to 0, the long position payoff would be -K. The forward short position has the exact opposite payoff. If the price at maturity were to drop to 0, the short position would have a payoff of K.

Let us now consider an example question that uses a forward to deal with foreign exchange rates. Your money is currently in US dollars. However, in one year’s time, you need to make a purchase in British pounds of €100,000. The spot exchange rate today is 1.13 US$/€, but you don’t want cash tied up in foreign currency for a year.

You do want to guarantee the exchange rate one year from now, so you enter into a forward deal for €100,000 at 1.13 US$/€. At the date of maturity, the spot exchange rate is 1.16 US$/€. How much money have you saved by entering into the forward agreement?

The contract is an agreement to pay $113,000 (calculated from €100,000 x 1.13 US$/€) for €100,000.

If you had not entered into the contract, at the maturity date you would have paid €100,000 x 1.16 US$/€ = $116,000

By hedging your position with a forward contract, you saved: $116,000 – $113,000 = $3,000.

Additional Resources

Thank you for reading CFI’s guide on Forward Contract. To keep learning and developing your knowledge base, please explore the additional relevant CFI resources below:

Update the detailed information about What Is& Should You Disable It? on the website. We hope the article's content will meet your needs, and we will regularly update the information to provide you with the fastest and most accurate information. Have a great day!