Forward forward contract: Difference between revisions

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


== See also ==
== See also ==
*[[Contract]]
* [[Forward forward borrowing]]
* [[Forward forward borrowing]]
* [[Forward forward deposit]]
* [[Forward forward deposit]]
* [[Forward forward rate]]
* [[Forward forward rate]]
* [[Forward rate agreement]]
* [[Forward rate agreement]]
* [[Forward yield]]
* [[Principal]]
* [[Principal]]


[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Financial_products_and_markets]]

Latest revision as of 10:08, 6 July 2022

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