June 24, 2017

What is Forward deal?

Forward deal involves an agreement between two counterparts to final a deal at spot rate for particular date and time in future. This period comprises 60 days until which the forward deal can extend. The purpose of forward deal is to cover future up and down in the forex market so it could not disturb the current agreement. In case of forward deal no renewal fee is involved but its margin spread is higher than that of day trading.