Foreign Currency Contract
/ˈfɒrɪn ˈkʌrənsi ˈkɒntrækt/
Definitions
- (n.) A legally binding agreement to exchange specified amounts of different currencies at a predetermined rate and date.
The company entered into a foreign currency contract to hedge against exchange rate fluctuations.
Forms
- foreign currency contract
- foreign currency contracts
Related terms
See also
Commentary
Foreign currency contracts are commonly used in international trade and finance to manage currency risk; clarity in specifying currency amounts, rates, and settlement dates is essential.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.