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A currency forward contract is an agreement between two parties to exchange a fixed amount of one currency for another at a set future date with a fixed exchange rate. These contracts can be outright or non-deliverable forwards. Outright forward contracts involve exchanging currencies, while NDFs are settled in a single currency like the US dollar. These contracts can be used for speculation or risk management. An example involves a US technology company expecting payment of 10 million British pounds in 90 days at a current spot rate of $1.60 per pound, anticipating to receive $16 million USD.