Forward Exchange

Forward Exchange

Forward Foreign Exchange Transaction

An Exchange Forward, or a forward exchange transaction, allows the purchase or sale of amounts payable or receivable by a company at a future date.


Target market



Fix an exchange rate today to cover an exchange transaction to be carried out in the future, buying or selling the currency for that date.


Maximum 12 months.

Interest rate

Rates fixed periodically. Negotiated on a case-by-case basis


  • Importers can cover the exchange risk today, buying the amount in foreign currency that they will have to pay for a future date, preventing its appreciation;
  • Exporters can cover the exchange rate risk today, selling the amount in foreign currency they will receive at a future date, thus preventing exchange rate depreciation.

Technical characteristics

  • Forward can be traded for all currencies.
  • Forward can only be undone by performing an operation in the opposite direction of the initial one;
  • The Forward can be brought forward at any time up to its spot expiration date, by recalculating its price;
  • The Forward can be extended, if authorized by the Commercial Department, to a new date after its initial maturity, by adjusting the respective price.


  • Hed exchange risk today;
  • Instrument to take advantage of market fluctuations