forward-exchange contract

forward-exchange contract
An agreement to purchase foreign exchange at a specified date in the future at an agreed exchange rate. In international trade, with floating rates of exchange, the forward-exchange market provides an important way of eliminating risk on future transactions that will require foreign exchange. See also financial futures; foreign-exchange market

Big dictionary of business and management. 2014.

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  • 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… …   Investment dictionary

  • forward exchange contracts — A contract where parties enter into a sale and purchase with completion at a much later date. Practical Law Dictionary. Glossary of UK, US and international legal terms. 2010 …   Law dictionary

  • Forward exchange market — The forward exchange market is a market for contracts that ensure the future delivery of a foreign currency at a specified exchange rate. The price of a forward contract is known as the forward rate.Forward RatesForward rates are usually… …   Wikipedia

  • forward exchange — A type of foreign exchange transaction whereby a contract is made to exchange one currency for another at a fixed date in the future at a specified exchange rate. By buying or selling forward exchange, business protect themselves against a… …   Financial and business terms

  • 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. Bloomberg Financial Dictionary …   Financial and business terms

  • forward foreign exchange contract — Agreement that obligates an investor to deliver a specified quantity of one currency in return for a specified amount of another currency. Bloomberg Financial Dictionary …   Financial and business terms

  • contract — con·tract 1 / kän ˌtrakt/ n [Latin contractus from contrahere to draw together, enter into (a relationship or agreement), from com with, together + trahere to draw] 1: an agreement between two or more parties that creates in each party a duty to… …   Law dictionary

  • forward rate — An *exchange rate specified in a foreign exchange *contract. The contract involves either a commitment or an *option to buy or sell a specified amount of a foreign currency at a specified date …   Auditor's dictionary

  • Contract bridge — Bridge declarer play Alternative name(s) Bridge Type trick taking Players 4 Skill(s) require …   Wikipedia

  • break-forward — Boston option A contract on the money market that combines the features of a forward exchange contract and a currency option. The forward contract can be undone at a previously agreed rate of exchange, enabling the consumer to be free if the… …   Big dictionary of business and management

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