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Transaction in future date by forward contract(future delivery) to purchase/sell foreign exchange at prevailing rate.

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Q: What is forward rate in foreign exchange market?
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Related questions

Swap in foreign exchange market?

the swap is basically purchasing foreign currency in the spot market and selling at forward or purchasing at forward and selling also at forward swap in purchasing in spot rate and selling at forward and swap out is the opposit of it


What is Two way exchange quotes?

The buying rate & selling rate in foreign exchange market.


What is the difference between spot and forward exchange rate?

In forward exchange rate, the rate is booked in advance for a fixed amount and period,which will remain unchanged in case of any market fluctuation or deceleration.In fact forward exchange rate booking is done to protect or guard against volatile market condition. In spot exchange rate, the exchange rate prevalent on a particular date is booked for immediate effect.


Difference between Spot Exchange Rate and Exchange rate?

An exchange rate, which is also called the foreign-foreign exchange rate, is the rate that currency will be exchanged for another currency and may have a forward contract. The spot exchange rate is the current exchange rate today with immediate delivery and it is also called benchmark rates and outright rates.


What is forward rate?

Forward exchange rate is the agreed upon exchange rate to be used in a forward trade.


Which foreign exchange system has the highest foreign exchange rate?

The Zimbabwean has the highest foreign exchange rate.


What determines supply and demand in the foreign-exchange market?

Supply and demand in the foreign-exchange market are determined by changes in many market variables, including relative price levels, real interest rates, productivity, product preferences, and perceptions of economic stability.


How the foreign exchange rate is calculated?

the foreign exchange rate is determined by the supply and demand of the market. If the demand of a certain currency pair is greater than the supply the price will rise and vice versa.


What are foreign currencies?

Convert one type of currency into another at a given exchange rate. That rate is determined by the supply and demand of the desired currency plus processing fees and/or commissions charged by the retail institution. The market where everyone can exchange currency into another called Forex (foreign exchange) market.


How are prices established in the foreign exchange market?

The rates are quoted in two ways: A direct exchange rate (or direct quote) is the price of the foreign currency in terms of the home currency; and Indirect exchange rate (or indirect quote) is the price of the home currency in terms of the foreign currency.


What is foreign marketing?

The foreign exchange market is a market that is mainly used for the exchange of currency. This market helps to decide the rate and values of all currency.


What statement describes the foreign exchange rate?

The foreign exchange rate is also known as the exchange rate. This is defined as the difference between two currencies.