Selling a forex forward
Similarly, you would sell an FX forward contract if you think the quote will rise against the base currency over a certain time period. For example, if EUR/USD is trading at 1.1900, with a buy price of 1.1910 and a sell price of 1.1890. You believe USD will rise against EUR over the next three months, so you agree to sell EUR/USD at a price of 1.1890 at a specified date in the future.
After the three months have passed, EUR/USD is trading at 1.2190, with a buy price of 1.2200 and a sell price of 1.2180. You execute your contract at the agreed sell price of 1.2180, which is 0.0290 more than the current sell price. You would still have to pay the agreed amount and would suffer a loss.
