Foreign exchange forward contract and Partnership: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
(Add links.)
 
Line 1: Line 1:
A transaction which solely involves the exchange of two different currencies:
1.  ''Law''. 


#on a specific future date
A partnership exists where two or more individuals enter into business together.
#at a fixed foreign exchange rate which is pre-agreed at the outset of the contract.


Governed in the UK by the Partnership Act 1890 and the Limited Liability Partnerships Act 2000.


Foreign exchange forward contracts are used - among other purposes - for hedging forward foreign exchange exposures.
For example known or likely future currency receivables and payables.


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.
2.


 
More broadly, any collaboration between different organisations or other entities.
Both of the parties to the forward contract are committed to the exchange.
 
A forward contract differs in this respect from an option. In an option contract, only the option writer is committed.
 
 
Also known as a Forward foreign exchange contract, or a Foreign exchange forward.




== See also ==
== See also ==
*[[Contract]]
* [[Corporation]]
* [[Deal contingent forward]]
* [[Drawings]]
* [[Forward contract]]
* [[Firm]]
* [[Hedging]]
* [[General partner]]
* [[Non-deliverable forward]]
* [[Limited liability partnership]]
* [[Option]]
* [[Limited partner]]
* [[Synthetic]]
* [[Limited partnership]]
* [[LLC]]
* [[Public private partnership]]
* [[Trans-Pacific Partnership]]
* [[Unincorporated]]


[[Category:Manage_risks]]
[[Category:Compliance_and_audit]]

Revision as of 16:34, 14 June 2022

1. Law.

A partnership exists where two or more individuals enter into business together.

Governed in the UK by the Partnership Act 1890 and the Limited Liability Partnerships Act 2000.


2.

More broadly, any collaboration between different organisations or other entities.


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Foreign_exchange_forward_contract&oldid=36686’