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A currency forward contract is an agreement to exchange fixed amounts of currency at a future date, with a predetermined exchange rate. There are outright forwards and non-deliverable forwards, used for speculation or risk management. Outright forwards involve exchanging two currencies, while non-deliverable forwards settle in a single currency like USD. In a tutorial explaining outright forward contracts, a US tech company expects 10 million British pounds from a UK customer, with a current spot rate of $160 per pound, aiming to receive $6 million USD in 90 days.
