FX Forward (forward purchase and sale of foreign exchange) – FX FWD belongs to the group of forward transactions because it involves a transaction execution date which is longer than two business days (spot). FX FWD is an agreement to buy and sell foreign currency at a future date at a pre-agreed and fixed exchange rate. The exchange rate in the future is a product of the current market rate and the difference in the market interest rates of the two currencies and does not represent speculation or prediction.
Covered FX Forward (covered forward purchase and sale of foreign exchange) – belongs to the group of forward transactions but involves payment by the client of one currency on the day of the agreement, and the currency that the client buys is paid by the Bank on an agreed date in the future.
FX Swap Swap (a product intended to overcome "short-term illiquidity" in a currency) – FX Swap is a product that represents a combination of one spot and one forward transaction. In practice, it represents the simultaneous contracting of two interconnected transactions, spot purchase (or sale) of currency, and forward sale (or purchase) of the same currency. In principle, it is a short-term loan of one currency with the pledge of another. The future exchange rate is calculated using the same method as for FX FWD.