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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 future date. The exchange rate for the future transaction is determined at the time of signing the agreement. There are two types of forward contracts: outright forwards and non-deliverable forwards. Outright forward contracts involve the actual exchange of currencies, while NDFs are settled in a single currency. These contracts can be used for speculation or risk management. The tutorial focuses on outright forward contracts and uses a US technology company expecting a 10 million British pound payment in 90 days as an example.