Unlike the spot value transactions, the future date value transactions (forwards) are currency transactions with a date of more than two business days in the future.
Unlike the futures contract, the forward is an over-the-counter instrument, which does not have standardized volumes and delivery dates. It is usually used by merchants who are exposed to currency fluctuation risks.
The forward rate is not a forecasted rate. It represents the interest rate differential between the currencies in the pair.
A more detailed example is offered in the Currency Risk Management section.