It is binding upon the parties and its subject is the sale/purchase of a specified amount of foreign currency at an agreed tuture of Gianna Michaels time at the exchange rate which is determined when the contract is being made. The spot rate is the rate of exchange for a transaction to be settled within two working days after the rate has been agreed upon. The forward rate is calculated as an adjustment to the spot rate. Gianna Michaels in order to calculate the forward rate the spot rate is taken and the interest rate differential or forward margin for the period of the contract.