An agreement made today that sets both the exchange rate and the quantity of currency that will be traded at some point in the future is called a ________ trade.

Question

Quizplus · Accepted Answer

A forward trade is an agreement between two parties to exchange a set amount of currency at a specified exchange rate, at a future date. This type of trade allows for businesses to lock in exchange rates, which mitigates the risk of currency fluctuations in global trade.

An Agreement Made Today That Sets Both the Exchange Rate