Forward Contract is a contract to buy or sell foreign currency in future by the buyer and seller agree to buy or sell any country currency in amount of trading present but in contract can specify delivery date in the future. The seller will use a Forward Contract when seller needs to know exact costs and do not want to worry or face the risk of foreign exchange. The seller can contact the Bank that uses the service. Or at banks for export for request forward Contract or so-called "forward reservations" which exchange rate contracts that will be applied in future or when the seller receives payment from the foreign buyer. The bank is like a middleman who agreed to purchase foreign currency from seller because the Bank will purchase the exchange rate. If buyers are satisfied with the Bank's offer price after that, The Bank will issue a contract to seller call this “Forward contract” which specifies the currency, amount, the exchange rate that the Bank agrees to purchase, and the term of the agreement