Currency Forward

Dictionary Says

Definition of '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".
Investopedia Says

Investopedia explains 'Currency 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.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Discount Spread

    Currency forward ...
  2. Currency Futures

    A transferable ...
  3. Outright Forward

    A forward ...
  4. Forward Contract

    A cash market ...
  5. Hedge

    Making an ...
  6. Forex - FX

    The market in ...
  7. Noon Average Rate Contract - NARC

    A type of ...
  8. Quantity-Adjusting Option - Quanto ...

    A cash-settled, ...
  9. Short Date Forward

    A forward ...
  10. Forward Discount

    In a foreign ...

Articles Of Interest

  1. A Primer On The Forex Market

    Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers.
  2. Getting Started In Forex

    Before entering this market, you should define what you need from your broker and from your strategy.
  3. Top 7 Questions About Currency Trading Answered

    Whether you're puzzled by pips or curious about carry trades, your queries are answered here.
  4. Futures Fundamentals

    For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them.
  5. What does "outrights" mean in the context of the FX market?

  6. How are foreign exchange rates affected by commodity price fluctuations?

  7. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.
  8. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.
  9. Investors: Rely On Your Gut

    Find out how your personality and natural instincts can direct your investment choices.
  10. Simplify Your Portfolio

    Faced with an overabundance of choices, many investors forget to stick to the basics.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center