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A currency forward is a binding contract in the foreign exchange market that locks in the exchange rate for the purchase or sale of a currency on a future date. A currency forward is essentially a customizable hedging tool that does not involve an upfront margin payment.

Forex futures are standardized futures contracts to buy or sell currency at a set date, time, and contract size. These contracts are traded at one of the numerous futures exchanges around the world.

Currency Contract means any futures contract or option thereon providing for the delivery or receipt at a future date of a specified amount of a traded currency at a specified price and delivery point, or any other futures contract or option thereon approved for trading for U.S. persons.

A forward contract allows you to buy or sell an asset on a specified future date. To account for one, start by crediting the Asset Obligation for the current value of the good on the liability side of the equation. Then, on the asset side, debit the Asset Receivable for the forward rate, or future value of the good.

FX forward valuation algorithmcalculate forward exchange rate in euros: Forward in dollars=spot+Forwardpoints/10000 , Forward in Euros=1/ForwardInDollars.caclulate net value of transaction at maturity: NetValue=Nominal(Forward-Strike)More items...?Sep 18, 2013

Currency futures are a exchange-traded futures contract that specify the price in one currency at which another currency can be bought or sold at a future date.Currency futures can be used to hedge other trades or currency risks, or to speculate on price movements in currencies.

Futures or FX futures for short, are a type of futures contract to exchange a currency for another at a fixed exchange rate on a specific date in the future. Since the value of the contract is based on the underlying currency exchange rate, currency futures are considered a financial derivative.