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A currency forward contract is an agreement to exchange a fixed amount of one currency for another on a future date. The exchange rate is set when the contract is signed. There are outright forwards and non-deliverable forwards. Outright forwards involve the actual exchange of currencies, while NDFs are settled in a single currency. Both types can be used for speculation or risk management. This tutorial focuses on outright forwards, using the example of a US company expecting payment in British pounds.