An agreement to exchange currencies at some point in the future using an agreed-upon exchange rate is called a _____ trade.

Question

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A forward trade is an agreement between two parties to exchange currencies at a future date, with an agreed-upon exchange rate. This type of trade is used to hedge against currency risk and can be customized to meet the specific needs of the parties involved. A spot trade is an immediate exchange of currencies at the current market rate, while a swap trade involves simultaneous spot and forward trades. A floating trade and a triangle trade are not commonly used terms in the foreign exchange market.

An Agreement to Exchange Currencies at Some Point in the Future