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How do Forward Contracts Work?

April 26, 2017contracts forward

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How do Forward Contracts Work?

1 Answer

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10 Posted

Forward contracts enable you to fix an exchange rate in advance of actually needing to make an overseas payment. The advantages: For example it allows you to know and fix the sterling cost of a property purchase (private client) or shipment of overseas goods (corporate client) up to 1 year in advance of the payment date. It also protects you against adverse currency fluctuations.