Both FX Forward and FX Swap involves a two-stage contract where there is an initial exchange at the beginning of the process and subsequently another exchange takes place at the expiration of the contract.

Question

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FX Forward involves a single exchange of currencies at a future date at a predetermined rate, without any initial exchange of currencies at the beginning of the contract. FX Swap involves two transactions - an initial exchange of currencies at the start, and a reverse exchange at the end of the contract.

Both FX Forward and FX Swap Involves a Two-Stage Contract