Need clarification! You’re a US investor. When you LONG a forward, you deliver US$ and receive foreign currency. Is that correct? * On CFAI V5, p.47. The holder of the LONG position which means he has to PAY $101.227 per forward contract and receive $102 (current market price)? Since the forward worth 0.7728, you have credit risk. \* On CFAI V5. p.123-125 When you will make foreign currency payment in the future, you can take a LONG position in the forward market to PAY US and receive foreign currency. * Interest rate parity When F (broker quote exchange rate) < S(current exchange rate)* (1+Cd)/(1+Cf) You can borrow foreign currency and SELL the forward (PAY US$ and receive foreign currency) to make profit Are these three consistent?