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FX forwards underlying product


Tja

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hi all,

could anyone can help me to understand what's the underlying product in FX forwards on IG? I figured that spot prices are probably coming from FXCM, but can't find anything that corresponds to forward prices, and that they have similar expiry dates as futures.

 

many thanks

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On 01/02/2022 at 09:56, Tja said:

hi all,

could anyone can help me to understand what's the underlying product in FX forwards on IG? I figured that spot prices are probably coming from FXCM, but can't find anything that corresponds to forward prices, and that they have similar expiry dates as futures.

 

many thanks

Hi @Tja,

Forex/currency forwards are derivatives that give you the obligation to buy or sell FX at a specific price, on a specific date in the future. FX forwards are traded over the counter, and they are not standardised for everyone.
When you trade FX forwards, you are agreeing to trade a currency pair at a set price on a set date in the future. This means you intend to buy one currency (base currency) and sell another (quote currency)at a predetermined price because you believe one of the currencies will strengthen against the other by a specific date.

You can find further information here.

I hope that helps.

All the best - Arvin

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