I like the first definition/translation you were given, especially the "hedging" part. Thought you' d like a bit of supporting reference, by to reinforce the above. Taken from Termium: English:Commercial Law Foreign Trade exchange contract s CORRECT *foreign exchange contract s* COR French:Commercial Law Foreign Trade *contrat de change* s CORRECT,M English:Currency and Foreign Exchange Foreign Trade forward cover s CORRECT forward covering operation s CORRECT *forward coverage* s CORRECT
DEF - The arrangement of a forward foreign exchange contract to protect a buyer or seller of foreign currency from unexpected fluctuations in the exchange rate. French:Currency and Foreign Exchange Foreign Trade couverture de change à terme s CORRECT,FEM couverture à terme s CORRECT,FEM DEF - Contrat conclu entre une entreprise et sa banque en vertu duquel des devises sont achetées ou vendues par avance, à un cours fixé et à une échéance déterminée, moyennant un report ou un déport variable selon la devise et la durée du contrat

I've amalgamated terms taken from European Communities Glossary, 8th edition 1990. These seem to be some sort of insurance contracts to cover the risks involved in using forward exchange markets.




P.S. to proz, please use a background which makes messages readable on a black and white screen.

I've amalgamated terms taken from European Communities Glossary, 8th edition 1990. These seem to be some sort of insurance contracts to cover the risks involved in using forward exchange markets.




P.S. to proz, please use a background which makes messages readable on a black and white screen.

The carryover and offset on forward foreign exchange hedge contracts are accrued at current rates for profit and loss account purposes (or for balance sheet purposes). All other transactions are shown (or valued) at market rate.