A forward contract is a contract between you and oneadvocate Business that fixes a foreign exchange (FX) rate for a set amount of your chosen currency until an agreed date in the future.

A fixed forward rate means the exchange takes place on a pre-agreed future date. A flexible forward rate means the exchange takes place between two future dates.

The difference between ‘fixed’ and ‘flexible’ rate relates to the date or date period selected. For fixed rates, the forward point is calculated using the date the forward is due to be scheduled. For flexible rates, it’s calculated using the start date of your chosen period.

You can see the difference in rates directly in the oneadvocate Business app as you set up each type of contract.

A forward rate is the price of an exchange set for a specific future time. A spot rate refers to the current exchange rate as determined by global markets.

The difference between a forward rate and a spot rate is the time an exchange is made. With a spot rate, you can see the exact costs in real-time. With a forward rate, you can agree on an exchange rate ahead of time, regardless of market fluctuations.

A fixed rate means two currencies will always be exchanged for the same price. A floating rate means that the price of each currency can change based on market factors.

The difference between floating and fixed rate is about set costs. A fixed rate has costs set for future exchanges, but a floating rate is in-line with global markets.