- Forward-forward agreement
businessand contract law, a future-forward agreement (FFA) is a form of forward rate agreementin which party "A" agrees to lend party "B" the "m1" amount of money, at future time "t1". In return, "B" will pay to "A" a larger monetary amount "m2" at time "t2 > t1". The name "future-forward agreement" derives from the fact that both issuing and repayment of the loan take place in the future. A regular forward rate agreement lends the money at once. A quoted forward rateis associated with every future-forward agreement. This can be thought of as the interest rateearned by party "A" for lending the money to "B". 
John goes to his bank today. He agrees to take out a loan of $10,000 from the bank in one year's time, and will pay back the loan with $10,800 in two years' time. The forward rate would be ($10,800/$10,000)-1=8%.
Wikimedia Foundation. 2010.
Look at other dictionaries:
cash forward agreement — A commitment to purchase or sell a security at a future date that is binding on both the buyer and the seller. Also known as a firm commitment. American Banker Glossary … Financial and business terms
Forward Price — The predetermined delivery price for an underlying commodity, currency or financial asset decided upon by the long (the buyer) and the short (the seller) to be paid at predetermined date in the future. At the inception of a forward contract, the… … Investment dictionary
Forward — Produits dérivés financiers Produits fermes Forwards (Contrat de gré à gré) Futures (Contrat à terme) Swaps (Échange financier) Produits optionnels Options et … Wikipédia en Français
forward contract — Under Title 11 U.S.C. Section 101: (25) The term forward contract means (A) a contract (other than a commodity contract, as defined in section 761) for the purchase, sale, or transfer of a commodity, as defined in section 761(8) of this title, or … Glossary of Bankruptcy
forward rate agreement — ( FRA) A customized agreement between two parties specifying the rate to be paid at some future date. Usually tied to LIBOR. American Banker Glossary ( FRA) Agreement to borrow or lend at a specified future date at an interest rate that is fixed… … Financial and business terms
agreement — a‧gree‧ment [əˈgriːmənt] noun [countable] 1. an arrangement or promise to do something, made by two or more people or organizations: • Under the agreement, the company will distribute our products in North America. • What happens if the warring… … Financial and business terms
forward rate agreement — (FRA) An agreement under which one party undertakes to make to the other party payments calculated by reference to a specified fixed interest rate on a notional principal sum in respect of a period in the future. Similarly, the other party agrees … Law dictionary
forward start facility — England, Wales A committed syndicated loan used to refinance (that is, repay) an existing syndicated loan on maturity. Key features of a forward start facility include: • It is a new syndicated loan agreement that sits alongside an existing… … Law dictionary
Forward rate agreement — контракт между банком и клиентом, гарантирующий процентную ставку по отношению к определенной сумме в течение обусловленного периода. Синонимы английские: FRA См. также: Банковские процентные ставки Финансовый словарь Финам … Финансовый словарь
Forward — may refer to: * Relative direction, where forward is the opposite of backward * Forward , the motto of the State of Wisconsin * Forward , the motto of the City of Birmingham * Forward contract, an agreement to buy or sell an asset at a pre agreed … Wikipedia