Forward contract in currency

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Ravi Kumar Rajgaria (Querist)
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08 May 2008 Please giveme the detail about the future contracts in foreign cuurency with banks?
How it is benefited for exporters?
These gain/loss is taxable?

CA Akshat

CA Akshat (Expert)
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11 May 2008 forward contracts are generally been used for the hedging
it fix the future rate
so one can easily survive from volatality of the market
hoope the query is resolved
thanks
akshat

Taranjit Singh

Taranjit Singh (Expert)
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02 April 2009 A forward contract is an agreement between two parties to buy or sell an asset at a specified point of time in the future. The price of the underlying instrument, in whatever form, is paid before control of the instrument changes. This is one of the many forms of buy/sell orders where the time of trade is not the time where the securities themselves are exchanged.

Taranjit Singh

Taranjit Singh (Expert)
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02 April 2009 In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a specified commodity of standardized quality (which, in many cases, may be such non-traditional "commodities" as foreign currencies, commercial or government paper [e.g., bonds], or "baskets" of corporate equity ["stock indices"] or other financial instruments) at a certain date in the future, at a price (the futures price) determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders on the exchange at the time of the purchase or sale of the contract. They are contracts to buy or sell at a specific date in the future at a price specified today. The future date is called the delivery date or final settlement date. The official price of the futures contract at the end of a day's trading session on the exchange is called the settlement price for that day of business on the exchange.

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