= Forward exchange rate
{wiki=Forward_exchange_rate}
The forward exchange rate is the agreed-upon exchange rate for a currency pair that will be used to exchange currencies at a future date, typically beyond two days from the transaction date. This rate is determined in the present but is intended for a transaction that will take place at a specified time in the future. The forward exchange rate is often used by businesses and investors to hedge against potential fluctuations in currency values.
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