Community Forex Questions
When to use currency forward contracts?
Currency forward contracts are extensively utilized when currency exchange rates impact the price of commodities delivered.
A classic example is when an importer purchases goods from a foreign exporter and the currencies of the two countries are not the same. They might also be used when a person or organization wants to buy property in a foreign country or when paying upkeep on such property after it has been purchased.
Currency forward contracts can also be arranged between an individual and a financial institution to pay for a future overseas vacation or to fund education in another country.
A classic example is when an importer purchases goods from a foreign exporter and the currencies of the two countries are not the same. They might also be used when a person or organization wants to buy property in a foreign country or when paying upkeep on such property after it has been purchased.
Currency forward contracts can also be arranged between an individual and a financial institution to pay for a future overseas vacation or to fund education in another country.
Jun 17, 2022 05:48