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Forward Exchange Rate

   Also found in: Wikipedia 0.01 sec.
Forward exchange rate
Exchange rate fixed today for exchanging currency at some future date.
Forward Foreign Exchange Rate
The agreed-upon exchange rate for a forward contract on a currency. When a forward contract is made, the parties agree to buy/sell the underlying currency at a certain point in the future at a certain exchange rate. The rate is negotiated directly between the parties, unlike a futures contract, which trades on an exchange. Partly because there is little secondary market for forward contracts, determining the forward foreign exchange rate is a zero-sum game: one party will gain on the contract and one will lose, depending on the movements of the relevant currencies between the formation of the contract and its maturity.
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Then there is also the exchange rate that has been quoted and traded on the current day, but will be delivered and paid for in the future (a specific date agreed upon by two investors), and is referred to as the forward exchange rate.
What You Need to Know About Forex Rate in Online Forex Trading by Alvin Huang / Finance and Investment community
In the presence of microstructure frictions, spot and forward exchange rates move against traders as they increase their positions.
International Finance and Macroeconomics by NBER Reporter
t], integrated of the same order d, is presented by: [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] (4) In the ARFIMA bivariate model (0, d, d-b, 0) we estimate at the same time, the order of integration (d) of the spot and forward exchange rate series, and that of the cointegrating vector (d') such as d'= d-b.
Foreign exchange market efficiency: fractional cointegration approach by Belkacem, Lotfi; El Meddeb, Zahra; Boubaker, Heni / International Journal of Business
 
 
 
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