Forward currencies

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As a forward exchange refers to foreign bank money , which at the forward exchange market is traded. In contrast to cash currencies , forward currencies are delivered on certain deadlines (1, 3, 6 months). The rate and amount of a forward exchange transaction are bindingly determined, and the execution (delivery, payment) takes place after the agreed deadline. Forward exchange transactions are carried out for the purpose of exchange rate hedging and speculation. The capital requirement is lower in currency forwards, but the risks are much higher than in spot currency speculation .

See also

Web links

  • Frank Geßner: Forward currencies. In: Gabler Wirtschaftslexikon. Springer Gabler Verlag, accessed October 9, 2014 .