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  2. Forward contract -fixed term

Forward contract -fixed term

These contracts specify a ‘fixed’ future date at which it is anticipated delivery of the foreign currency will be effected. If delivery is made on the fixed date (expiry of the contract) the contract rate applies. However, delivery may be made at any time during the term of the contract but if prior to the stated due date (i.e. a pre-delivery) the contract rate may be adjusted in accordance with forward margins then applicable.

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