FX Forward definition

FX Forward means, in respect of an OTC Derivative Contract, an OTC Derivative Contract under which: (i) the parties agree to exchange two currencies at a specified rate of exchange on a date (agreed at the time of trading) that is later than the settlement date for a spot market transaction, including where the delivery of the currency units will take the form of banknotes denominated in the specified currency; or (ii) a specified rate of exchange and valuation date are agreed at the time of trading and the spot market rate for the exchange of the currencies is ascertained on such valuation date and one party then makes a payment to the other, on the basis of the difference between the two rates.
View Source
FX Forward and “FX Options” transactions are settled on an agreed date in the future at prices which are agreed on the date of the transaction. FX Forward trading involves an obligation to enter into the transaction at the agreed price on the settlement date. A purchaser of FX Options has a right to enter into a transaction in the underlying FX Spot currency pair on the expiry date if the price is more favourable than the market price at this time. On the other hand, a seller of options has an obligation to enter into a transaction with the purchaser on the settlement date if requested by the purchaser. Purchased options therefore involve a limited risk in the form of premium which is payable when the contract is made, while options that have been sold involve an unlimited risk in the form of changes to the price of the underlying FX Spot currency pair. NDFs are used for countries which have capital controls and do not allow their currencies to exit their countries. An NDF is traded on a forward-basis and is settled in USD at the official fixing rate which happens one (1) or two (2) days before the value date; after the fixing, there will be an exchange of USD which is equivalent to the profit and loss of the trade. The currency exchange market is the world's largest financial market with 24-hour trading on Business Days. It is characterized, among other things, by a relatively low profit margin compared to other products. A high profit is therefore subject to a large trading volume, which is achieved for instance by margin trading as described above. When trading in foreign exchange, a gain realised by one market player will always be offset by another player's loss. Foreign exchange transactions are always made with the custodian as counterparty; this implies that any position opened with the custodian can only be closed with the same custodian. Overall, Over the counter (“OTC”) transactions may involve greater risk compared to for example trading in securities like shares due to the fact that in OTC transactions there is no central counterparty and either party to the transaction bears certain credit risk and risk of default on the other party. Please note that as foreign exchange is margin traded, it allows you to take a larger position than you would otherwise be able to based on your funds with the custodian. As such, a relatively small negative or positive market movement can have a disproportionately significant effect on your investment. This makes the poten...
View Source
FX Forward means a Transaction consisting in the exchange of two currencies at an agreed Exchange Rate whose settlement is to occur within a period from (and inclusive) three Working Days (T+3) to 1 year after the conclusion of the Transaction, unless otherwise agreed by the parties.
View Source

Examples of FX Forward in a sentence

  • Bank may terminate the FX Forward Contracts if an Event of Default occurs.

  • The total FX Forward Contracts at any one time may not exceed 10 times the amount of the FX Reserve.

  • The amount otherwise available for Credit Extensions under the Revolving Line shall be reduced by an amount equal to ten percent (10%) of each outstanding FX Forward Contract (the “FX Reduction Amount”).

  • The aggregate amount of FX Forward Contracts at any one time may not exceed ten (10) times the amount of the FX Reserve.

  • Any amounts needed to fully reimburse Bank for any amounts not paid by Borrower in connection with FX Forward Contracts will be treated as Advances under the Revolving Line and will accrue interest at the interest rate applicable to Advances.

  • FX Forward Contracts shall have a Settlement Date of at least one (1) FX Business Day after the contract date and shall be subject to a reserve of ten percent (10%) of each outstanding FX Forward Contract (the “FX Reserve”).

  • Silicon may, in its discretion, terminate the FX Forward Contracts at any time that an Event of Default occurs and is continuing.

  • Borrower shall execute all standard form applications and agreements of Silicon in connection with the FX Forward Contracts, and without limiting any of the terms of such applications and agreements, Borrower shall pay all standard fees and charges of Silicon in connection with the FX Forward Contracts.

  • If there is availability under the Committed Revolving Line and the Borrowing Base, then Borrower may enter in foreign exchange forward contracts with the Bank under which Borrower commits to purchase from or sell to Bank a set amount of foreign currency more than one business day after the contract date (the "FX Forward Contract").

  • The unused portion of the Revolving Line, for the purposes of this calculation, shall include amounts reserved under the Cash Management Services Sublimit for products provided and under the Foreign Exchange Sublimit for FX Forward Contracts.


More Definitions of FX Forward

FX Forward means a notional rolling monthly foreign exchange forward contract to purchase EUR and sell the foreign currency in which the Fund Interests are denominated to hedge the notional value of the Fund Interests denominated in such foreign currency into EUR.
View Source
FX Forward means an agreement to buy or sell a stated amount of a given currency on an agreed date in the future at forward exchange rate agreed on the transaction date, or to make a payment in a specified currency which is the difference between the agreed forward exchange rate and the spot exchange rate of the currency pair for the specified amount of the respective currency at the agreed date.
View Source
FX Forward means notional rolling monthly foreign exchange forward contracts to buy EUR and sell USD to hedge the Equity Portfolio's exposure to the movement in EUR/US dollar exchange rates; and
View Source
FX Forward means a cash settled foreign exchange forward contract where the currency pair is SEK/USD or USD/SEK.
View Source
FX Forward and “FX Options” transactions are settled on an agreed date in the future at prices which are agreed on the date of the transaction. FX Forward trading involves an obligation to enter into the transaction at the agreed price on the settlement date. A purchaser of FX Options has a right to enter into a transaction in the underlying FX Spot currency pair on the expiry date if the price is more favourable than the market price at this time. On the other hand, a seller of options has an obligation to enter into a transaction with the purchaser on the settlement date if requested by the purchaser. Purchased options therefore involve a limited risk in the form of premium which is payable when the contract is made, while options that have been sold involve an unlimited risk in the form of changes to the price of the underlying FX Spot currency pair. NDFs are used for countries which have capital controls and do not allow their currencies to exittheir countries. An NDF is traded on a forward-basis and is settled in USD at the official fixing rate which happens one (1) or two (2) days before the value date; after the fixing, there will be an exchange of USD which is equivalent to the profit and loss of the trade.
View Source

Related to FX Forward

  • FX Forward Contract is defined in Section 2.1.3.

  • Basis Risk Shortfall Carry Forward Amount With respect to any Distribution Date and any Class of Class A Certificates and Class M Certificates, an amount equal to the sum of (A) the excess, if any, of (a) the amount of Current Interest that such Class would have been entitled to receive on such Distribution Date had the Pass-Though Rate applicable to such Class been calculated at a per annum rate equal to One-Month LIBOR plus the related Certificate Margin, over (b) the amount of Current Interest that such Class received on such Distribution Date if the Pass-Through Rate is limited to the related Net Rate Cap and (B) the amount in clause (A) for all previous Distribution Dates not previously paid, together with interest thereon at a rate equal to the related Pass-Through Rate for such Distribution Date. Bankruptcy Code: Title 11 of the United States Code.

  • Basis Risk Carry Forward Amount With respect to each Class of LIBOR Certificates, as of any Distribution Date, the sum of (A) if on such Distribution Date the Pass-Through Rate for any Class of LIBOR Certificates is based upon a Loan Group Cap or the WAC Cap, the excess, if any, of (i) the Accrued Certificate Interest Distribution Amount on such Class of LIBOR Certificates would otherwise be entitled to receive on such Distribution Date had such Pass-Through Rate not been subject to the Loan Group Cap or the WAC Cap, over (ii) the Accrued Certificate Interest Distribution Amount on such Class of Certificates on such Distribution Date taking into account (a) with respect to the Class A-1 Certificates at the lesser of the WAC Cap and the Loan Group I Cap, (b) with respect to the Class A-2 Certificates at the lesser of the WAC Cap and the Loan Group II Cap, and (c) with respect to each other Class of LIBOR Certificates, the WAC Cap, and (B) the Basis Risk Carry Forward Amount for such Class of LIBOR Certificates for all previous Distribution Dates not previously paid, together with interest thereon at a rate equal to the applicable Pass-Through Rate for such Class of LIBOR Certificates for such Distribution Date (without giving effect to the WAC Cap, Loan Group I Cap or Loan Group II Cap, as applicable).

  • Master Forward Confirmation means the Master Confirmation for Issuer Share Forward Sale Transactions, dated as of the date hereof, by and between the Company and the Forward Purchaser, including all provisions incorporated by reference therein.

  • Forward means the transaction resulting from each occasion on which the Company elects to exercise its right to deliver a Forward Placement Notice to the Forward Seller and the Forward Purchaser requiring the Forward Seller to use commercially reasonable efforts to sell the Forward Hedge Shares as specified in such Forward Placement Notice, subject to the terms and conditions of this Agreement.