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Trading Terms

Forward contract -fixed term

Welcome to our lesson on financial contracts! Today, we will be discussing a term that is commonly used in the world of finance - forward contracts. These contracts are a way to anticipate the future delivery of a foreign currency at a fixed date. The agreed contract rate is applied if delivery is made on the fixed date, but it can also be adjusted at any time during the contract term if delivery is made earlier. This adjustment is based on the forward margins that are currently applicable.

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