Forward exchange rate
Forward exchange rate is the prevailing exchange rate for exchange (delivery) at some agreed-upon future date, which is usually 30, 90, or 180 days from the day the transaction is negotiated.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Forward exchange rate. The prevailing exchange rate for exchange (delivery) at some agreed-upon future date, which is usually 30, 90, or 180 days from the day the transaction is negotiated.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Forward exchange rate. An agreed-upon price at which two currencies will be exchanged at some future date.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
