Forward foreign exchange rate: Difference between revisions
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imported>Doug Williamson (Link with FX page.) |
imported>Doug Williamson (Add link) |
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* [[Forward points]] | * [[Forward points]] | ||
* [[FX]] | * [[FX]] | ||
* [[Interest rate parity]] | |||
* [[Spot rate]] | * [[Spot rate]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
Latest revision as of 20:28, 28 April 2016
The agreed exchange rate on the day a transaction is entered into, for a foreign currency transaction that settles more than two days in the future.
The rate is determined by adjusting the spot foreign exchange rate, to reflect the interest rate differential between the two currencies involved for the forward period.
