forward price - Fixanswer - Get your knowledge fix!

What Is The Difference Between Spot Rate And Exchange Rate?

January 24, 2024 by Ahmed Ali

What Is The Difference Between Spot Rate And Exchange Rate? In currency markets, the spot rate, as in most markets, refers to the immediate exchange rate. The forward rate, on the other hand, refers to the future exchange rate agreed upon in forward contracts. What is the difference between spot and forward exchange rates? Generally,

Does A Forward Contract Prevent Upside Gain?

January 24, 2024 by Rachel Ostrander

Does A Forward Contract Prevent Upside Gain? Does a forward contract prevent upside gain? The advantages of forward contracts are as follows:1) They can be matched against the time period of exposure as well as for the cash size of theexposure. 2) Forwards are tailor made and can be written for any amount and term.