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
- Contract
- Corporate
- Deal contingent forward
- Dynamic forward contract
- Fixing instrument
- Foreign exchange
- Foreign exchange forward contract
- Foreign exchange risk
- Forward contract
- Forward exchange market
- Forward foreign exchange rate
- Forward market
- Forward price
- Forward rate
- Futures contract
- Hedging
- Plain vanilla
- Risk management
- Risk response
- Transfer