Outright Forward

Outright Forward
A forward currency contract with a locked-in exchange rate and delivery date. An outright forward contract allows an investor to buy or sell a currency on a specific date or within a range of dates. Foreign exchange forward contracts function in a very similar fashion to standard forward contracts.

Companies that make large purchases from foreign business can use outright forward contracts to cover costs. For example, a French company that buys materials from a Chinese supplier may be required to provide payment for half of the total value of the payment now and the other half in six months. The first payment can be covered with a spot trade, but in order to reduce currency risk exposure, the French company locks in the exchange rate with an outright forward. If the company still requires the currency in six months, it can purchase it at the agreed-upon rate.

Investment dictionary. . 2012.

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Look at other dictionaries:

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  • ОБЫЧНАЯ СРОЧНАЯ СДЕЛКА — (outright forward) Контракт на продажу или покупку в будущем какой то валюты по фиксированной цене без выплаты соответствующих компенсаций. Финансы. Толковый словарь. 2 е изд. М.: ИНФРА М , Издательство Весь Мир . Брайен Батлер, Брайен Джонсон,… …   Финансовый словарь

  • Mercado de divisas — Este artículo o sección sobre economía necesita ser wikificado con un formato acorde a las convenciones de estilo. Por favor, edítalo para que las cumpla. Mientras tanto, no elimines este aviso puesto el 18 de noviembre de 2010. También puedes… …   Wikipedia Español

  • обычная срочная сделка — Контракт на продажу или покупку в будущем какой то валюты по фиксированной цене без выплаты соответствующих компенсаций. [http://www.vocable.ru/dictionary/533/symbol/97] Тематики финансы EN outright forward …   Справочник технического переводчика

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