| 释义 |
forward exchange contract Forward Currency ContractAn agreement between two parties to exchange two currencies at a given exchange rate at some point in the future, usually 30, 60, or 90 days hence. A forward currency contract mitigates foreign exchange risk for the parties and is most useful when both parties have operations or some other interest in a country using a given currency. Forward currency contracts are over-the-counter contracts.
Forward Foreign Exchange RateThe agreed-upon exchange rate for a forward contract on a currency. When a forward contract is made, the parties agree to buy/sell the underlying currency at a certain point in the future at a certain exchange rate. The rate is negotiated directly between the parties, unlike a futures contract, which trades on an exchange. Partly because there is little secondary market for forward contracts, determining the forward foreign exchange rate is a zero-sum game: one party will gain on the contract and one will lose, depending on the movements of the relevant currencies between the formation of the contract and its maturity.forward exchange contract a contract to exchange a given amount of one foreign currency for another at a specified future date (usually one or three months ahead). For example, if a UK importer is due to pay $100,000 for materials in three months' time, then in order to guarantee the pound cost of these materials it might cover the transaction by entering into a forward exchange contract to buy $100,000 for delivery in three months' time in return for a given amount of pounds, the amount of pounds being determined by the forward exchange rate. See FORWARD MARKET. |