Range forward

(redirected from Range Forwards)

Range forward

A forward exchange rate contract that places upper and lower bounds on the future cost of foreign exchange.

Range Forward

A forward contract on a currency with a collared payout. It is used to hedge a short position on the underlying currency. See also: Cylinder.
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Therefore, economic hedges of anticipatory transactions involving forward, future, currency-swap and combination-option transactions, including range forwards and participating forwards, won't qualify for hedge accounting, pursuant to SFAS 52 and EITF 91-4.
A user's guide to currency hedging
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