EUR/RUB 5Y FX Forward Outright (Mid)

EUR/RUB FX Forward Outright — an over-the-counter (OTC) derivative financial instrument, which is a bilateral agreement to exchange a specified amount of Euros for Russian Rubles on a set future date at an exchange rate fixed at the time the transaction is concluded. This rate, known as the forward rate, allows the parties to protect themselves against adverse future movements in the currency exchange rate. The contract is settled either through the physical delivery of the currencies by the parties to each other or through a cash settlement of the difference between the fixed forward rate and the market spot rate on the settlement date. The primary purpose is to hedge currency risks or to conduct speculative operations.