A forward exchange occurs when two parties agree to exchange currency and execute the deal at some specific date in the future.

Question

Quizplus · Accepted Answer

A forward exchange is a type of currency exchange deal where the exchange of currency between two parties is agreed upon for a future date. It is a contract that obligates the buyer and seller to transact at some future date, at a set exchange rate, regardless of what the actual market exchange rate is at that time.

A Forward Exchange Occurs When Two Parties Agree to Exchange