valuuttasopimusta
Valuuttasopimus, often translated as currency forward or foreign exchange forward, is a contract between two parties to exchange a specific amount of one currency for another currency at a predetermined exchange rate on a future date. These agreements are typically used to hedge against the risk of adverse currency fluctuations. For example, an exporter expecting to receive payment in a foreign currency can enter into a currency forward to lock in an exchange rate, thus protecting themselves from a potential devaluation of that currency before the payment is received.
The key components of a currency forward contract are the notional amount of currency to be exchanged,
Currency forwards are traded over-the-counter (OTC), meaning they are customized agreements negotiated directly between parties, often