Fx forward contract formula
An FX Forward contract is an agreement to buy or sell a fixed amount of foreign currency at previously agreed exchange rate (called strike) at defined date (called maturity). FX Forward Valuation Calculator We can consider the price of the forward contract “embedded” into the contract. The forward value is the opposite and fluctuates as the market conditions change. At initiation, the forward contract value is zero, and then either becomes positive or negative throughout the life-cycle of the contract.