MiniMe7

I think you have it all backwards:

Let us clarify what you are trying to say:

ALL OF THIS APPLIES FOR Traditional Forwards ONLY
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1. All the positions in forwards are from the point of view of the Long. in thart part you are right.
2. If the Value is +ve, it is a GAIN to the LONG -> Short pays the Long.
3. If the Value is -ve it is a GAIN to the SHORT -> Long pays the Short.
4. It is a zero-sum game at all times.
5. Initially when the contract is started - the price set on the forward is such that there is no money exchanged initially.

NOW let us look at a situation of an OFF-MARKET Forward:
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This is the only case of a forward where money is exchanged UP FRONT.
Now say Long and Short priced the forward.
Long had a positive value. But it is OFF-MARKET. So you need to make sure that the value is 0 to start with. In this case - Long pays the Short the value calculated - so Current value = 0.

If Long has a -ve value - and it is OFF-Market - value must again be 0 - so Short pays the Long and makes the Current Value = 0.

CP