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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 a fixed exchange rate. There are outright forwards and non-deliverable forwards, with the former involving actual currency exchange. These contracts can be used for speculation or risk management. In an example, a US technology company is expecting a payment of 10 million British pounds in 90 days at a spot rate of $1.60 per pound, expecting to receive $16 million USD.