Trade NOK/USD forward contracts with Deutsche Bank as the market maker! 📈📉
Agreed Forward Rate: 0.10 USD/NOK
Contract Value: 1,000,000 NOK
Contract Date: Today
Delivery Date: 30 Days
Settlement Rate: ?
Total Amount to Deliver: ? USD
PnL: 0 USD
Settlement Rate: USD/NOK
Total Amount to Deliver: USD
Your PnL: USD
Explanation:
Long NOK Forward Example:
You agreed to buy 1,000,000 NOK at 0.10 USD/NOK, meaning you must pay 100,000 USD. If the market rate is USD/NOK, the market value is USD. Since you must pay 100,000 USD, you USD.
Short NOK Forward Example:
You agreed to sell 1,000,000 NOK at 0.10 USD/NOK, meaning you expect to receive 100,000 USD. If the market rate is USD/NOK, the actual market value is USD, but you still sell at the higher agreed price. This results in a USD.