Forward outrights are typically used by clients of banks, rather than the banks themselves. These clients might include corporate treasury groups and hedge fund managers.
Corporate treasuries might use forward outrights to:
Hedge a once-off future receivable
Hedge a series of future payments
Fund managers might use forward outrights to:
Taking a position in a currency
Hedge their exposure to existing foreign positions
Using FX Swaps
FX swaps can be used to facilitate the:
Managing of foreign cash flows
Moving of maturity dates of existing positions
Maintaining of open positions in existing positions