Long Dated Forward

Long Dated Forward
A type of forward contract commonly used in foreign currency transactions. Long dated forward refers to contracts that typically involve positions that have settlement dates longer than a year away. Long dated forward contracts are sometimes used by companies to hedge certain currency exposures.

Long dated forward contracts can be risky instruments. The holder of these contracts assumes the risk that a counterparty may not hold up their end of the contract. Also, long dated forward contracts on currencies often have larger bid-ask spreads than shorter-term contracts, making their use somewhat expensive.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Long Dated Forwards —    Forward foreign exchange contracts with value dates beyond 12 months.    ► See also Forwards …   Financial and business terms

  • long — 1. adj., n., & adv. adj. (longer; longest) 1 measuring much from end to end in space or time; not soon traversed or finished (a long line; a long journey; a long time ago). 2 (following a measurement) in length or duration (2 metres long; the… …   Useful english dictionary

  • Mesoamerican Long Count calendar — Long Count redirects here. For the 1927 boxing match, see The Long Count Fight. Detail showing three columns of glyphs from a portion of the 2nd century CE La Mojarra Stela 1. The left column gives a Long Count date of 8.5.16.9.7, or 156 CE. The… …   Wikipedia

  • Derivative (finance) — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Yield curve — This article is about yield curves as used in finance. For the term s use in physics, see Yield curve (physics). Not to be confused with Yield curve spread – see Z spread. The US dollar yield curve as of February 9, 2005. The curve has a typical… …   Wikipedia

  • Black–Scholes — The Black–Scholes model (pronounced /ˌblæk ˈʃoʊlz/[1]) is a mathematical model of a financial market containing certain derivative investment instruments. From the model, one can deduce the Black–Scholes formula, which gives the price of European …   Wikipedia

  • Messerschmitt Bf 109 — Bf 109 Restored Messerschmitt Bf 109G 6 Role Fighter Manufacturer …   Wikipedia

  • Interest rate swap — An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party s stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. They… …   Wikipedia

  • Economic history of modern China — For developments before 1911, see Economic history of China (Pre 1911). For economic history since 1949, see Economy of the People s Republic of China. The Lujiazui financial district of Pudong, Shanghai, the financial and commercial hub of… …   Wikipedia

  • Britain — noun a monarchy in northwestern Europe occupying most of the British Isles; divided into England and Scotland and Wales and Northern Ireland; Great Britain is often used loosely to refer to the United Kingdom (Freq. 2) • Syn: ↑United Kingdom, ↑UK …   Useful english dictionary

Share the article and excerpts

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