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Break Forward |
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Break Forward A derivative of a forward contract in which the buyer agrees to sell the underlying forward at a discount to its current value. However, the buyer may cancel this agreement if the value of the underlying rises above a stated level. A break forward contract imitates an option contract and is used primarily on forwards in foreign exchange. See also: Deferred payment option. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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