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A currency forward contract is an agreement to exchange a fixed amount of one currency for another at a future date with a fixed exchange rate. It can be outright forwards, where currencies are exchanged, or non-deliverable forwards settled in a single currency. Used for speculation or risk management, this tutorial focuses on outright forward contracts, using an example of a US technology company awaiting a payment of 10 million pounds in 90 days, considering the current spot rate of $1.60 per pound.
