Common Contracts
1 similar Forward Rate Agreement (Fra) contracts
ContractForward Rate Agreement (Fra) • September 5th, 2022 • New South Wales
[8.01] A forward rate agreement (FRA) is an agreement between two parties which requires one party to pay an amount to the other party on a certain future date. The amount to be paid and the party who must make the payment are determined by the difference between the contract rate and the interest settlement rate (ie the prevailing market rate at the time of settlement). There is no commitment by either party to lend or borrow the contract amount.
