Both forward and spot rates tend to act as navigation tools in the diverse world of investments. Primarily, the forward rate indicates forecasted interest rates, while the spot rate provides the exact ...

A spot rate is the current market price at which a stock, bond, commodity, or currency can be purchased or sold. A forward rate or forward price is a price set in advance between a buyer and a seller ...

Many international corporations routinely use forward outright contracts to hedge FX market exposures against adverse moves and help stabilize their foreign currency cash flow. Unlike currency futures ...