Forward deals are contracts for purchasing a given amount of foreign currency on a predetermined future date, at a predetermined exchange rate. 

Delivery of the underlying currency is made on the deal’s maturity date. Contrary to spot transactions, the date on which the forward deal is concluded differs from the date on which the payment is made. When the deal is made, an exchange rate is agreed upon, at which you can buy or sell the currency at a set time in the future. Forward deals can be made in most currencies and with a period of up to one year. 

The forward deal helps manage the risk from future changes in the exchange rate.