Advanced
Comparing dealer quotes and execution records
A useful dealer comparison starts with identical obligations. A tighter looking rate may be worse once dates, credit terms and settlement costs are included.
Read articleFOLITIC / FORWARDS TRADING GUIDE
Forwards Trading Guide
Understand forward contracts, interpret quotes and build currency, commodity and portfolio hedges. Follow ten stages from contract basics to advanced valuation, execution and disciplined risk management.
Start with What a forward contract commits you to, then follow the next lesson links. Explore 40 lessons with worked examples, exercises and further reading.
Explore the learning path
Browse by topic
Execution and Contract Lifecycle · All lessons
Execution and Contract Lifecycle
Compare quotes, reconcile trades and handle changes before maturity.
Advanced
Unwinding a forward before maturity
Closing a forward early requires a valuation and agreement on what is being terminated. An opposite trade can leave two contracts outstanding.
Read article
Advanced
Extending and rolling without hiding a loss
Rolling changes the maturity of an exposure. It does not erase the economic result already accumulated on the original contract.
Read article
Advanced
Amendments novation and break clauses
A changed invoice does not automatically change its hedge. Amendments, novations and break clauses each alter a different part of the contract relationship.
Read article