What Is a Forward Exchange Contract?
Foreign exchange forward transaction Currency receipt and payment of foreign exchange transactions.
Forward foreign exchange contract
- According to the beginning period of the forward, the forward foreign exchange contract is divided into
- 1. The trading location of foreign exchange forward contracts is not fixed, usually through modern communication methods.
- A foreign exchange forward contract is a contract that promises to deliver a certain amount of foreign exchange at a certain time in the future. Financial futures are also contracts that promise to deliver a certain financial product at a certain time in the future. Exchanges carry out; financial options are the option to sell (or buy) a certain financial product, but if the actual price is lower than (higher than) the contract, this right can be waived.