Currency Forward Contract
By definition, currency forward contracts have settlement date of more than two working days. The contract holders are obligated to buy or sell the currency at a specified price, at a specified quantity, and on a specified future date.

Currency Swaps
A currency swap involves the exchange of principal and interest in one currency for another currency on a specific future date. The swap rate is the exchange rate associated with the fixed portion of a currency swap as determined by its particular market.

Currency Options
A currency option is a contract that grants the holder the right, but not the obligation, to buy or sell currency at a specified price during a specified period of time. An American option can be exercised anytime during its life whereas a European option can only be exercised at the end of its life. To exercise this right, the buyer needs to pay a “premium” to the seller, which is virtually the price of the option.