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A currency forward contract is an agreement between parties to exchange a fixed amount of one currency for another in the future, with the exchange rate locked in at the time of signing. There are outright forwards and non-deliverable forwards. Outright forwards involve exchanging the currencies, while NDFs settle in a single currency like USD. Both types can be used for speculation or risk management. This tutorial focuses on outright forwards, using an example of a US company expecting payment in British pounds, with a current spot rate of $1.60 per pound.