Off Market FRA

Dear All:

Could you please give some ideas about Off market FRA.

Thank you so much for your time.


Its an FRA with initial value not equal to 0 and the party which is having a gain at time 0 offsets it by paying the amount to the other party so that the FRA is made on the agreed upon terms (with value not equal to 0) and the value is adjusted to become 0 by paying off the gain by the party having it.