They will have to make a foreign currency purchase/sale contract, Forward Contract is a contract to buy or sell foreign currency in advance by the buyer and seller agree buy or sell a certain amount of foreign currency that is currently, but it certainly set the delivery date in the future. The exporter will use a Forward Contract when exporters need to know exact costs, and I don't want to worry about or dealing with risks from Exchange rates. By exporters can contact the Bank that issued the sender's bank or to the export to sales contracts, the exchange rate in advance or so-called "forward reservations", which is the exchange rate that will be applied to contracts in the days ahead, or when the exporter has received เงิ.From foreign buyers themselves. The Bank, the exporter contact the sphere that people agreed to purchase foreign currency from exports. The Bank will purchase the exchange rate quotation. If buyers are satisfied with the Bank's offer price, the Bank would be issued a contract to export this Forward contract calls Contract which contracts to specify the currency amount. The exchange rate that the Bank agrees to purchase, and the duration of the contract. Both the vendor and would like to share the risk and to benefit the most because of the Forward Contract to distribute the risks and prevention of the risk of exchange rate fluctuations.Also be aware of the exact cost and revenue. In addition to trading foreign currency in advance to speculation. Because futures contracts will be the future dates with the exchange rate, and the amount has been agreed, which is the distribution of risk is very popular. It allows the operator to plan to advance. Also, know the exact cost and easier to control Affairs.
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