Currency Forward Contract: When to Use
Use a Forward Currency Contract to mitigate uncertainty relating to future payment. If you are an individual, you may need a Forward Contract to buy a home abroad; if you’re a business you may want to protect foreign exchange income. Using a Forward Contract, you are protecting yourself or your business against unfavorable movements and lock-in today’s foreign exchange rate. Currency Forward Contracts are particularly popular because Forward exchange rates don’t carry any future judgment on movements, and it is often reasonably priced by foreign exchange companies. Finding the best currency Forward providers can help you win the best Forward price.