Lock in rate

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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October 30, 2017 at 1:42 am #413688
twilight1987
Participant
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Sir,

I noticed in lock in rate question , we are not closing the deal.We just calculate the transaction value at lock in rate and consider it as final payment.As per my understanding futures are meant for gain /loss so we can balance it with gain or loss on actual transaction.

kindly advice.
October 30, 2017 at 8:22 am #413719
John Moffat
Keymaster
- Topics: 57
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The lock-in rate is the net effect of converting the transactions at spot together with the gain or loss on the futures.

This is all explained, with examples, in my free lectures on the lock-in rate.
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