Forward forward contract: Difference between revisions
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imported>Doug Williamson (Layout.) |
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== See also == | == See also == | ||
*[[Contract]] | |||
* [[Forward forward borrowing]] | * [[Forward forward borrowing]] | ||
* [[Forward forward deposit]] | * [[Forward forward deposit]] |
Latest revision as of 10:08, 6 July 2022
A forward forward borrowing or deposit is a binding contract struck today, for the physical borrowing or lending of funds at a fixed future date.
(At an agreed rate, for a predetermined fixed period.)
The Principal amount borrowed or lent is physically transferred between the parties, and repaid - plus the contracted amount of fixed interest - at maturity.
Not to be confused with a Forward Rate Agreement, which is a derivative contract for differences.