Fixed forward contract

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Risk management - foreign exchange.

A fixed forward contract is a foreign exchange forward contract with no option elements.

It can be viewed as a plain vanilla forward contract.


Contrasted with a dynamic forward contract.


Corporates act to mitigate FX volatility
Payment fintech Moneycorp suggests a number of ways in which corporates can mitigate the impact of FX exposure...
Make use of forward contracts: Forward contracts, either fixed or dynamic, can be customised to allow companies to lock an exchange rate for a future overseas payment.
Philip Smith, editor, The Treasurer online - 14 October 2022.


See also