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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 set in advance. There are outright forwards, where currencies are exchanged, and non-deliverable forwards settled in a single currency. Both types can be used for speculation or risk management. In an example, a US company expecting 10 million British pounds in 90 days at a spot rate of $1.60 per pound could use an outright forward contract to mitigate currency risk.