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In currency forward contracts, two parties agree to exchange a fixed amount of one currency for another at a future date with a pre-determined exchange rate. 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. An example is given of a US tech company expecting a payment of 10 million British pounds in 90 days at a spot rate of $1.60 per pound, which would result in receiving $16 million.