Forward Starting

Also known as Forward Forward Swap, Delayed Start Swap, Deferred Start Swap


This removes exchange rate risk


This is a swap that comes into effect at a forward start date


Example
An investor wants to sell EUR in 1 months time and buy it back in 3 months time.


This is the equivalent to the following two swaps
1) Buy EUR spot and sell EUR 1 month forward
2) Sell EUR spot and but EUR 3 month forward




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