FORWARD RATE AGREEMENT VS FORWARD CONTRACT In forward contract - TopicsExpress



          

FORWARD RATE AGREEMENT VS FORWARD CONTRACT In forward contract there is a contract to sell/buy the foreign currency at a fix rate known today. It is not for betting purpose and it is necessary to complete the contract so real money is need to be bought or sell While FRA is a contract to borrow or invest a fix sum of money at a fixed rate related to LIBOR today. It is used for the betting purpose and only the difference amount is exchanged.
Posted on: Fri, 13 Sep 2013 05:59:50 +0000

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