Foreign exchange forward contract - Revision history

imported>Doug Williamson: Add links.

2023-02-02T11:18:45Z

Add links.

2023-01-27T19:46:08Z

Layout.

← Older revision		Revision as of 19:46, 27 January 2023
Line 6:		Line 6:

	Foreign exchange forward contracts are used - among other purposes - for hedging forward foreign exchange exposures.		Foreign exchange forward contracts are used - among other purposes - for hedging forward foreign exchange exposures.

	For example known or likely future currency receivables and payables.		For example known or likely future currency receivables and payables.


	They are priced by adjusting the spot foreign exchange rate to reflect the interest rate differential between the two currencies involved for the forward period.		They are priced by adjusting the spot foreign exchange rate to reflect the interest rate differential between the two currencies involved for the forward period.

2022-07-06T10:06:41Z

Add link.

2018-08-04T10:02:18Z

Link with Deal contingent forward page.

2017-02-23T11:37:09Z

Differentiate from option and link with Option page.

← Older revision		Revision as of 11:37, 23 February 2017
Line 9:		Line 9:

	They are priced by adjusting the spot foreign exchange rate to reflect the interest rate differential between the two currencies involved for the forward period.		They are priced by adjusting the spot foreign exchange rate to reflect the interest rate differential between the two currencies involved for the forward period.


			Both of the parties to the forward contract are committed to the exchange.

			A forward contract differs in this respect from an option. In an option contract, only the option writer is committed.


Line 18:		Line 23:
	* [[Hedging]]		* [[Hedging]]
	* [[Non-deliverable forward]]		* [[Non-deliverable forward]]
			* [[Option]]
	* [[Synthetic]]		* [[Synthetic]]

	[[Category:Manage_risks]]		[[Category:Manage_risks]]

2016-11-16T13:56:57Z

Removed link

2016-05-30T16:44:23Z

Add link.

2014-11-01T14:37:56Z

Link with qualifications page.

2013-08-27T13:46:57Z

Spacing 27/8/13

← Older revision		Revision as of 13:46, 27 August 2013
Line 3:		Line 3:
	#on a specific future date		#on a specific future date
	#at a fixed foreign exchange rate which is pre-agreed at the outset of the contract.		#at a fixed foreign exchange rate which is pre-agreed at the outset of the contract.


	Foreign exchange forward contracts are used - among other purposes - for hedging forward foreign exchange exposures.		Foreign exchange forward contracts are used - among other purposes - for hedging forward foreign exchange exposures.
Line 11:		Line 12:

	Also known as a Forward foreign exchange contract, or a Foreign exchange forward.		Also known as a Forward foreign exchange contract, or a Foreign exchange forward.


	== See also ==		== See also ==
Line 17:		Line 19:
	* [[Synthetic]]		* [[Synthetic]]

	[[Category:~~FX_Risk~~]]		[[Category:Manage_risks]]

2013-06-28T22:59:24Z

← Older revision		Revision as of 22:59, 28 June 2013
Line 1:		Line 1:
	A transaction which solely involves the exchange of two different currencies:		A transaction which solely involves the exchange of two different currencies:

	~~:(i)~~ on a specific future date		#on a specific future date
	~~:(ii)~~ at a fixed foreign exchange rate which is pre-agreed at the outset of the contract.		#at a fixed foreign exchange rate which is pre-agreed at the outset of the contract.

	Foreign exchange forward contracts are used - among other purposes - for hedging forward foreign exchange exposures.		Foreign exchange forward contracts are used - among other purposes - for hedging forward foreign exchange exposures.
Line 16:		Line 16:
	* [[Non-deliverable forward]]		* [[Non-deliverable forward]]
	* [[Synthetic]]		* [[Synthetic]]

			[[Category:FX_Risk]]