# 3ABCDEFGHIJKLMNOPQRSTUVWYZ

ERA

Abbreviation of Exchange Rate Agreement. This is a foreign exchange derivative contract based on a synthetic or constructed forward contract in which settlement is based on the difference between two foreign exchange forward rates and not the spot rate. In contrast, a standard forward exchange agreement is based on the difference between the forward rate on the start date of the contract and the spot rate at settlement.

See also: Derivatives, Forwards, SAFE