Forward Rate Agreements (FRA)

banking

With forward rate agreements (also known as future rate agreements) two counterparties can hedge themselves against future interest rate changes. They agree upon an interest rate for a future period within a specific currency segment, which is valid for a predetermined amount. In contrast to futures, FRA’s are not standardized and are not traded on exchanges but are used in interbank trading.

Was this article helpful?

Related Articles



Need Support?

Can't find the answer you're looking for?
Contact Support