### Question
How is the term foreign exchange forward defined?


### Answer
The term **foreign exchange forward** is defined in *7 U.S.C. § 1a* as the following:

> a transaction that solely involves the exchange of 2 different currencies on a specific future date at a fixed rate agreed upon on the inception of the contract covering the exchange

#### Citation:
  - *7 U.S.C. § 1a*
  - Heading: **CHAPTER 1-COMMODITY EXCHANGES**

