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Forward Contracts
Financial derivatives that obligate the buyer to purchase, and the seller to sell, a particular asset at a predetermined future date and price.
Fair Value Hedge
A hedge of the exposure to changes in fair value of an asset or liability, or an unidentified firm commitment, that is attributable to a particular risk.
Cash Flow Hedge
A type of hedge that protects against the variability in cash flows arising from a particular risk, such as interest rate movements or currency fluctuations.
Foreign Exchange Loss
A loss that occurs when the value of a foreign currency declines in relation to the domestic currency, affecting transactions involving foreign currencies.
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