Currency Forward

Currency Forward
A forward contract in the forex market that locks in the price at which an entity can buy or sell a currency on a future date. Also known as "outright forward currency transaction", "forward outright" or "FX forward".

In currency forward contracts, the contract holders are obligated to buy or sell the currency at a specified price, at a specified quantity and on a specified future date. These contracts cannot be transferred.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Open currency forward position —   Difference between the sum of conditional and unconditional sales (spot sales excluded) and the sum of conditional and unconditional purchases (spot purchases excluded) in a particular foreign currency, whereby the values of options are… …   International financial encyclopaedia

  • Forward contract — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • forward rate agreement — ( FRA) A customized agreement between two parties specifying the rate to be paid at some future date. Usually tied to LIBOR. American Banker Glossary ( FRA) Agreement to borrow or lend at a specified future date at an interest rate that is fixed… …   Financial and business terms

  • foreign currency forward contract — Agreement that obligates its parties to exchange given quantities ofcurrencies at a prespecified exchange rate on a certain future date. Bloomberg Financial Dictionary …   Financial and business terms

  • Currency swap — Foreign exchange Exchange rates Currency band Exchange rate Exchange rate regime Exchange rate flexibility Dollarization Fixed exchange rate Floating exchange rate Linked exchange rate Managed float regime Markets Foreign exchange market Futures… …   Wikipedia

  • Currency future — Foreign exchange Exchange rates Currency band Exchange rate Exchange rate regime Exchange rate flexibility Dollarization Fixed exchange rate Floating exchange rate Linked exchange rate Managed float regime Markets Foreign exchange market Futures… …   Wikipedia

  • Currency board — Part of a series on Government Public finance File:Governmentbhj,i,gu Vedder Highsmith detail 1.jpeg …   Wikipedia

  • Forward exchange market — The forward exchange market is a market for contracts that ensure the future delivery of a foreign currency at a specified exchange rate. The price of a forward contract is known as the forward rate.Forward RatesForward rates are usually… …   Wikipedia

  • Currency transaction tax — For the more specific types of currency transaction taxes , see Tobin tax and Spahn tax. See also: Financial transaction tax A currency transaction tax is a tax placed on a specific type of currency transaction for a specific purpose. This term… …   Wikipedia

  • Currency pair — Foreign exchange Exchange rates Currency band Exchange rate Exchange rate regime Exchange rate flexibility Dollarization Fixed exchange rate Floating exchange rate Linked exchange rate Managed float regime Markets Foreign exchange market Futures… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”