Outright Deal
A forex transaction for delivery on any date other than spot, not part of a swap.
An outright deal is a standalone forward contract that settles on a date other than spot (T+2), outside a swap. It is used to lock in a future currency exchange.
An outright deal (or outright forward) is a forex transaction where currency exchange happens on a date other than spot (T+2), and it's not part of a swap transaction. It's a standalone forward contract used for hedging future currency needs.
How It Works
- Single leg transaction (not a swap)
- Delivery date beyond spot
- Price includes forward points (interest differential)
- Used to lock in future exchange rates
Trading Tips
Outright forwards are priced off the spot + forward points
Forward points reflect interest rate differentials
Useful for hedging known future payments
Outright Deal Example
Say you will receive $500,000 in three months and fear the dollar falls before then. You sell dollars forward for your home currency today at an agreed rate, locking the conversion no matter where spot trades at settlement.
How Traders Use Outright Deal
Use outrights to remove currency risk from future cashflows, not to speculate. Match the date to the real payment, compare two banks, and never confuse the forward points with a market forecast.
Related Terms
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