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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, with the exchange rate predetermined at the time of signing. There are outright forwards and non-deliverable forwards. Outright forwards involve actual currency exchange, while NDFs are settled in a single currency like the US dollar. Both types can be used for speculation or risk management. For example, a US tech company expecting 10 million British pounds in 90 days could use an outright forward contract to lock in the exchange rate and protect against currency fluctuations.