Webinar Series: FX Forward Contracts

Program Overview

FX Initiative cordially invites you to attend our webinar series. Join us and learn what forward contracts are and why they are the most used derivative. This FX Forward Contracts webinar will explain what forward contracts are and why they are the most used foreign exchange (FX) derivative among multinational corporations. We begin with a basic understanding of over-the-counter (OTC) foreign currency derivatives that are sold by commercial banks as part of their international treasury and risk management products. We will then delve into the fundamentals of forward contracts, including long and short positions and forward point premiums and discounts. Additionally, we will examine the payoff profile of a forward contract and review the economic cash flow and financial reporting implications. To conclude, we will look at the overwhelming popularity of forward contracts using the Bank for International Settlements (BIS) FX data as well as highlights from the annual reports (10-K) of several multinational corporations that deploy forward contracts to hedge currency risk.

Learning Objectives

1. Discover the concept of over-the-counter (OTC) foreign currency derivatives.
2. Identify what forward contracts are and how forward points are calculated.
3. Recognize the payoff profile, economics and accounting of forward contracts.
4. Explore why forward contracts are the most used FX derivative by corporations.

Who Should Attend?

New and seasoned finance, accounting, treasury, and related professionals (CPA, CIA, CRMA, CFE, etc.) interested in international business.