Two tools are used on the forward Forex: forward outright deals and exchange
deals or  swaps. A  swap deal is a combination of a spot deal and a forward outright  deal.
According to figures published by the Bank for International Settlements, the percentage share of
the forward market was 57 percent in 1998.

Translated into U.S. dollars, out of  an estimated daily gross turnover of US$1.49 trillion,
the total forward market represents US$900
billion. In the forward market there is no norm with regard to the settlement dates, which range
from 3 days to 3 years.
Volume in currency swaps longer than one year tends to be light but,
technically, there is no impediment to making these deals. Any date past the spot date and within
the above range may be a forward settlement, provided that it is a valid business day for both
currencies. The forward markets  are  decentralized  markets,
 with players around the world
entering into a variety of deals either on a one-on-one basis or through brokers. The forward price
consists of two significant parts: the spot exchange rate and the forward spread.
The spot rate  is
the main building block. The forward spread is also known as the forward points or the forward
pips. The forward spread  is necessary for adjusting the spot rate for specific settlement dates
different from the spot date. It holds, then, that the maturity date is another determining factor of
the forward price.