Fixed forward

A fixed forward allows you to secure a protection rate (called the benchmark forward rate), for a given amount and on a given date.

Complexity level :

:

Catégorie : 1 *

Guarenteed protection rate :

Protection rate level against benchmark forward rate :
Equal

Amount dealt at expiry :
Same as the notional amount

In what market to use it ?

Participation in a favorable move in spot : No

At expiry, you sell the notional amout at protection rate.

Currency cross	EUR / USD
Side	Sell USD
Contract maturity	6 months
Benchmark forward rate	1,109
Protection rate level	1,1090
Improved rate level	N/A
Readjusted rate level	N/A
Low barrier level	N/A
High barrier level	N/A
Participation rate	N/A
Ratio	1 : 1
Reserve of points	N/A
Type of contract	N/A
Frequency of fixings	N/A
Frequency of deliveries	N/A
Fixing	N/A

Advantages

Disadvantages