How is an outright forward FX transaction quoted?
A) Forward points
B) Full forward exchange rate
C) Depends on whether it is interbank or to a custome
D) Depends on the currency pair and sometimes the ter

Question

Quizplus · Accepted Answer

An outright forward FX transaction is quoted as the full forward exchange rate, which is the agreed exchange rate for the currency pair on the settlement date. The rate is determined at the time of the trade and does not change, regardless of changes in exchange rates between the trade date and the settlement date. Forward points (A) are used in calculating the forward exchange rate from the spot exchange rate, but they are not the actual quote for an outright forward transaction. Whether the transaction is interbank or to a customer (C) and the currency pair and sometimes the term (D) can affect the pricing, but the basic quote for an outright forward transaction is the full forward exchange rate.

How Is an Outright Forward FX Transaction Quoted