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.
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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...
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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.
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Examples of FX Forward in a sentence

  • The following table presents the sensitivity of derivative FX Forward instruments agrees with reasonable changes to exchange rate and its effect on equity.

  • The sum of the Exposures of all Constituents, excluding FX Forward Constituents, is capped at a maximum of 100% (the "Leverage Threshold") at all times during the lifetime of the product.

  • For the avoidance of doubt, an LEI is not required if • you are a Natural Person; • you transact foreign exchange spot contracts only; or • you enter into a FX Forward that is connected to a payment transaction and is not transacted on a MIFID Venue2.

  • Type An Over the Counter (OTC) derivative contract – FX Forward Objectives FX Forward products are used for managing foreign currency risks.

  • An FX Forward with Cash Settlement (NDF) is an agreement between two contracting parties (client/UniCredit Bank AG) to exchange an agreed amount of one currency for another currency at an agreed fixed rate on an agreed future date.

  • An OTC derivative is not tradable on a regulated exchange.Objectives An FX Forward transaction is a simple way to hedge a foreign exchange risk.

  • An FX Forward with Double Chance (American) is an agreement between two contracting parties (client/UniCredit Bank AG) to exchange an agreed amount of one currency for another currency at an agreed fixed rate on an agreed future date.

  • Type An Over the Counter (OTC) derivative contract – FX Forward with Double Chance (American) Objectives FX Forward with Double Chance (American) products are used for managing foreign currency risks.

  • The FX Forward Extra can be used for hedging or investment purposes.The amounts and other details in this document are used for indicative purposes.

  • Type An Over the Counter (OTC) derivative contract – FX Forward with Cash Settlement (NDF) Objectives FX Forward with Cash Settlement (NDF) products are used for managing foreign currency risks.


More Definitions of FX Forward

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.
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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.
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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.
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FX Forward means a cash settled foreign exchange forward contract where the currency pair is SEK/USD or USD/SEK.
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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
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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.

  • 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 an agreement (other than a future) to make or take delivery of, or effect a cash settlement based on the actual or expected price, level, performance or value of one or more underlying interests.

  • FX means the fixing of the FX Exchange Rate as published 2 p.m. Frankfurt am Main local time by the Fixing Sponsor on the FX Screen Page (or any successor).

  • Basis Risk Shortfall With respect to any Distribution Date and any Class of LIBOR Certificates, the amount by which the amount of interest calculated at the Certificate Interest Rate applicable to such Class for such date, determined without regard to the Net Funds Cap for such date but subject to a cap equal to the Maximum Interest Rate, exceeds the amount of interest calculated at the Net Funds Cap.

  • Carryforward Interest For any Class of Certificates and any Distribution Date, the sum of (1) the amount, if any, by which (x) the sum of (A) Current Interest for such Class for the immediately preceding Distribution Date and (B) any unpaid Carryforward Interest from previous Distribution Dates exceeds (y) the amount paid in respect of interest on such Class on such immediately preceding Distribution Date, and (2) interest on such amount for the related Interest Accrual Period at the applicable Pass-Through Rate.

  • Forward Hedge Amount means, for any Forward, the amount specified as such in the Placement Notice for such Forward (as amended by the corresponding Acceptance, if applicable), which amount shall be the target Aggregate Sales Price of the Forward Hedge Securities to be sold by the Forward Seller in respect of such Forward, subject to the terms and conditions of this Agreement.

  • Interest Carry Forward Amount With respect to any Distribution Date and the Class A Certificates or the Mezzanine Certificates, the sum of (i) the amount, if any, by which (a) the Interest Distribution Amount for such Class of Certificates as of the immediately preceding Distribution Date exceeded (b) the actual amount distributed on such Class of Certificates in respect of interest on such immediately preceding Distribution Date, (ii) the amount of any Interest Carry Forward Amount for such Class of Certificates remaining unpaid from the previous Distribution Date and (iii) accrued interest on the sum of (i) and (ii) above calculated at the related Pass-Through Rate for the most recently ended Interest Accrual Period.

  • Forward Hedge Price means, for any Forward Contract, the product of (x) an amount equal to one (1) minus the Forward Hedge Selling Commission Rate for such Forward Contract; and (y) the Volume-Weighted Hedge Price.

  • Cap has the meaning set forth in Section 8.04(a).

  • Forward Hedge Shares means all Common Stock borrowed by the Forward Purchaser and offered and sold by the Forward Seller in connection with any Forward that has occurred or may occur in accordance with the terms and conditions of this Agreement. Where the context requires, the term “Forward Hedge Shares” as used herein shall include the definition of the same under the Alternative Distribution Agreements.

  • FX Contract is any foreign exchange contract by and between Borrower and Bank under which Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency on a specified date.

  • Foreign Exchange (FX) or “FX-like” Service means a retail service offering which allows FX End Users to obtain Exchange Service from a mandatory local calling area other than the mandatory local calling area where the FX End User is physically located, but within the same LATA as the number that is assigned. FX Service enables particular End Users to avoid what might otherwise be toll calls between the FX End User’s physical location and other End Users in the foreign exchange.

  • Forward Contract means, for each Forward, the Confirmation evidencing such Forward between the Company and the Forward Purchaser or an Alternative Forward Purchaser.

  • Class A-1A Certificate means any one of the Certificates with a "Class A-1A" designation on the face thereof, substantially in the form of Exhibit A-1 attached hereto, and evidencing a portion of a class of "regular interests" in REMIC III for purposes of the REMIC Provisions.

  • FX Reserve is defined in Section 2.1.3.

  • Forward Hedge Selling Period means, subject to Section 2(c) hereof, the period of one to 20 consecutive Trading Days (as determined by the Company in the Company’s sole discretion and specified in the applicable Placement Notice (as amended by the corresponding Acceptance, if applicable) specifying that it relates to a “Forward”) beginning on the date specified in the applicable Placement Notice (as amended by the corresponding Acceptance, if applicable) or, if such date is not a Trading Day, the next Trading Day following such date and ending on the last such Trading Day or such earlier date on which the Forward Seller shall have completed the sale of Forward Hedge Securities in connection with the applicable Forward; provided that if, prior to the scheduled end of any Forward Hedge Selling Period (x) any event occurs that would permit the Forward Purchaser to designate a “Scheduled Trading Day” as an “Early Valuation Date” (as each such term is defined in the Master Forward Confirmation) under, and pursuant to the provisions opposite the caption “Early Valuation” in Section 2 of the Master Forward Confirmation or (y) a “Bankruptcy Termination Event” (as such term is defined in the Master Forward Confirmation) occurs, then the Forward Hedge Selling Period shall, upon the Forward Seller becoming aware of such occurrence, immediately terminate as of the first such occurrence. Any Forward Hedge Selling Period then in effect shall immediately terminate upon the termination of this Agreement pursuant to Section 9 or Section 13 hereof and as set forth in Sections 2(b) and 4 hereof.

  • Shortfall means, with respect to a Distribution Date, the excess (if any), of the sum of the amounts payable pursuant to clauses (v) through (viii) of Section 7.05 over Available Monies for such Distribution Date minus the amounts payable pursuant to clauses (i) through (iv) of Section 7.05 on such Distribution Date.