Forward forward contract: Difference between revisions
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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.) | 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. | 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. | Not to be confused with a Forward Rate Agreement, which is a derivative contract for differences. | ||
Revision as of 16:52, 5 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.
