Forward Exchange Contract

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Dictionary Says

Definition of 'Forward Exchange Contract'

A special type of foreign currency transaction. Forward contracts are agreements between two parties to exchange two designated currencies at a specific time in the future. These contracts always take place on a date after the date that the spot contract settles, and are used to protect the buyer from fluctuations in currency prices.

Investopedia Says

Investopedia explains 'Forward Exchange Contract'

Forward contracts are not traded on exchanges, and standard amounts of currency are not traded in these agreements. They cannot be canceled except by the mutual agreement of both parties involved. The parties involved in the contract are generally interested in hedging a foreign exchange position or taking a speculative position.
Search results for

'Forward Exchange Contract'

  • CFA Level 1 Study Guide - Derivatives - Terminating a Forward ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/terminating-forward-contracts-prior-to-expiration.asp
    ... Procedures; 15.14 Terminating a Forward Contract Prior to ... 15.20 Currency Forward
    Contracts; 15.21 Futures vs. ... Options and Moneyness; 15.28 Exchange Traded Options ...

  • Getting Started in Foreign Exchange Futures

    http://www.investopedia.com/articles/trading/04/102704.asp
    ... The cash that's backing a forward is not due until the ... More leverage (often
    $500+ per contract). ... Limited to the exchange's session times. ...

  • Using Interest Rate Parity To Trade Forex

    http://www.investopedia.com/articles/forex/08/interes-rate-parity.asp
    ... 4. Simultaneously hedge exchange risk by buying a forward contract to convert the
    investment proceeds into the first (lower interest rate) currency. ...

  • CFA Level 1 Study Guide - Global Economic Analysis - Interest ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/interest-applications.asp
    ... Procedures; 15.14 Terminating a Forward Contract Prior to ... 15.20 Currency Forward
    Contracts; 15.21 Futures vs. ... Options and Moneyness; 15.28 Exchange Traded Options ...

  • CFA Level 1 Study Guide - Derivatives - Currency Forward Contracts ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/currency-forward-contracts.asp
    ... Procedures; 15.14 Terminating a Forward Contract Prior to ... 15.20 Currency Forward
    Contracts; 15.21 Futures vs. ... Options and Moneyness; 15.28 Exchange Traded Options ...

  • CFA Level 1 Study Guide - Derivatives - Exchange Traded Options ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/exchange-traded-options.asp
    ... Procedures; 15.14 Terminating a Forward Contract Prior to ... 15.20 Currency Forward
    Contracts; 15.21 Futures vs. ... Options and Moneyness; 15.28 Exchange Traded Options ...

  • CFA Level 1 Study Guide - Derivatives - Forward Markets and ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/forward-markets-contracts-settlement-procedures.asp
    ... Procedures; 15.14 Terminating a Forward Contract Prior to ... 15.20 Currency Forward
    Contracts; 15.21 Futures vs. ... Options and Moneyness; 15.28 Exchange Traded Options ...

  • CFA Level 1 Study Guide - Derivatives - Characteristics of Forward ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/characteristics-fras-forward-rate-agreements.asp
    ... Procedures; 15.14 Terminating a Forward Contract Prior to ... 15.20 Currency Forward
    Contracts; 15.21 Futures vs. ... Options and Moneyness; 15.28 Exchange Traded Options ...

  • Variable Prepaid Forward Contract: Scam Or Safety Net?

    http://www.investopedia.com/articles/stocks/09/variable-prepaid-forward-contract.asp
    ... In exchange for this agreement, the brokerage firm or ... of their shares, variable prepaid
    forward contracts provide ... looking to enter into the contract, the only ...

  • CFA Level 1 Study Guide - Derivatives - Equity Forward Contracts ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/equity-forward-contracts.asp
    ... Procedures; 15.14 Terminating a Forward Contract Prior to ... 15.20 Currency Forward
    Contracts; 15.21 Futures vs. ... Options and Moneyness; 15.28 Exchange Traded Options ...

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