FRA

Japanese

FRA

Also known as

Forward rate agreement

Last reviewed

September 25, 2026

This is a draft, shown for review before publication.

An FRA (forward rate agreement) is a transaction in which the parties exchange, for a set future period, the difference between a contract rate agreed today and the benchmark rate fixed at the start of the period. The difference is calculated on a notional amount and is exchanged once, at the start of the period.