Plain FX Forward
In a plain FX forward, the client has the obligation to sell one currency and buy another currency on a certain future date at a pre-agreed rate.
Features of Plain FX forward
Obligation of the client to deliver the agreed amount in the respective currency at maturity.
Complete protection against adverse market movements.
The client does not have the opportunity to take advantage of favorable market movements
Example: The client execute a plain FX forward, with the obligation to sell EUR 1,000,000 and buy USD 1,190,000 on 30.11.2017 (maturity). At maturity, the transaction is performed at the pre-agreed rate - 1.1900.
Product Description FX Forward
Key Information Document FX Forward
Information on Costs FX SWAP