Saturday, 24 January 2009

Forward Contract

Forward Contract
A Forward Contract lets you buy or sell one currency against another, for settlement no later than on the day the contract expires.

Unlike spot contracts, a forward contract eliminates the risk of fluctuating exchange rates by locking in a price today for a transaction that will take place in the future (up to a maximum of 2 years).

A 10% deposit is required to secure the contract and is payable within two working days with settlement due on the day the contract expires.
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