Foreign exchange forward contract and Offline: Difference between pages

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A transaction which solely involves the exchange of two different currencies:
1.
In the context of payment and settlement systems, this term may refer to the transmission of transfer instructions by users, through such means as voice, written or telefaxed instructions, that must subsequently be input into a transfer processing system.


<p>(i) on a specific future date
2.
The term may also refer to the storage of data by a transfer processing system on media such as a magnetic tape or disk so that the user may not have direct and immediate access to the data.


(ii) at a fixed foreign exchange rate which is pre-agreed at the outset of the contract.</p>
3.
More generally, operating independently of - or disconnected from - another computer or electronic terminal.  For example, not connected to the internet.


Foreign exchange forward contracts are used - among other purposes - for hedging forward foreign exchange exposures.
== See also ==
For example known or likely future currency receivables and payables.
* [[Online]]


They are priced by adjusting the spot foreign exchange rate to reflect the interest rate differential between the two currencies involved for the forward period.
Also known as a Forward foreign exchange contract, or a Foreign exchange forward.
== See also ==
* [[Hedging]]
* [[Non-deliverable forward]]
* [[Synthetic]]

Revision as of 14:20, 23 October 2012

1. In the context of payment and settlement systems, this term may refer to the transmission of transfer instructions by users, through such means as voice, written or telefaxed instructions, that must subsequently be input into a transfer processing system.

2. The term may also refer to the storage of data by a transfer processing system on media such as a magnetic tape or disk so that the user may not have direct and immediate access to the data.

3. More generally, operating independently of - or disconnected from - another computer or electronic terminal. For example, not connected to the internet.

See also