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currency forward

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Financial Dictionary

Currency Forward

A forward contract that locks-in the price an entity can buy or sell currency on a future date.

Investopedia Commentary

In currency forward contracts, the contract holders are obligated to buy or sell the currency at a specified price, at a specified quantity, and on a specified future date. These contracts cannot be transferred.

Also known as "outright forward currency transaction."

Related Links

Futures Fundamentals

See also: Currency, Currency Future, Exchange Rate, Forward Contract

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