Forward currency contract

Forward currency contract
An agreement to buy or sell a country's currency at a specific price, usually 30, 60, or 90 days in the future. This guarantees an exchange rate on a given date.

Covering
Using forward currency contracts to predetermine the domestic currency amount of an expected future foreign receipt or payment.
CPI
A measure of inflation. See: Consumer Price Index.

The value date is used when there is a possibility for discrepancies due to differences in the timing of asset valuation. It usually applies to forward currency contracts, options and other derivative securities, interest payable or receivable.

Typically, you will see the use of value dates in determining the payment of products and accounts where there is a possibility for discrepancies due to differences in the timing of valuation. Such products include forward currency contracts, ...

Forward currency contract
Forward delivery
Forward differential
Forward discount
Forward exchange rate
Forward exchange transaction
Forward Fed funds
Forward foreign exchange contract
Forward foreign exchange rate
Forward forward contract ...

See also: Options, Analysis, Forward, Option, Future