Forward forward contract

A forward forward borrowing or deposit is a binding contract struck today, for the physical borrowing or lending of funds at a fixed future date.

(At an agreed rate, for a predetermined fixed period.)

The Principal amount borrowed or lent is physically transferred between the parties, and repaid - plus the contracted amount of fixed interest - at maturity.

Not to be confused with a Forward Rate Agreement, which is a derivative contract for differences.

See also

• Contract
• Forward forward borrowing
• Forward forward deposit
• Forward forward rate
• Forward rate agreement
• Forward yield
• Principal