What is a forward contract?
A forward contract fixes an exchange rate today for delivery on a future date. It removes uncertainty on a known cash flow, but it is an obligation, so you must deliver even if the spot rate moves in your favour.
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A forward contract fixes an exchange rate today for delivery on a future date. It removes uncertainty on a known cash flow, but it is an obligation, so you must deliver even if the spot rate moves in your favour.
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