Forward
Forward contracts are contracts that stipulate the purchase or sale of a specific asset at a future date at a predetermined price and quantity. Therefore, the transaction and maturity amount can be determined according to need.
It is a forward transaction used to manage exchange rate risk and obligations must be fulfilled at the end of maturity.
swap
Swap transactions, preferred by individuals and institutions aiming to manage cash flow and interest liabilities, are contracts that contain commitments of two parties to pay each other in certain periods. The relevant contract must include the definition of the assets that will change hands, the fixed or variable interest rate to be applied and the payment dates.
Option
They are forward transactions that allow the purchase/sale of an underlying asset determined on the transaction date, to be exchanged at a future date, at a price determined on the transaction date.
In Option Transactions, the parties are called option buyer and option seller.
The option buyer obtains a right to carry out the relevant purchase or sale transaction in return for the Option Premium he pays. The option seller assumes the obligation to carry out the relevant transaction in case the option is exercised in return for the Option Premium it receives.