Forward FX Contracts
Forward FX contracts involve purchase or sale of a currency for forward value. As with spot contracts, all contract details (exchange rate, amount, payment instructions) are agreed on the trade date, while the actual delivery of currency by the counterparties to the transaction takes place at a specified date in the future (e.g., two weeks, three months or six months later).
How do you benefit:
hedging against adverse exchange rate fluctuations in the case of currency exchange at a predetermined future date,
a broad range of settlement dates can be negotiated, from 3 to 365 days,
contracts can be concluded up to an authorized settlement limit or against a security deposit,
roll-back, pre-closing or roll-over options.
