Glossary:

Foreign Currency Draft: A check payable in a currency other than that of the country from which you are conducting business.

Forward Contract/ Foreign Currency Forward: An agreement to purchase or sell a set amount of a foreign currency at a specified price for settlement at a predetermined future date, or within a predetermined window of time.
Closed Forwards must be settled on a specified date. Open Forwards set a window of time during which any portion of the contract can be settled, as long as the entire contract is settled by the end date.

Good Funds: Monies that are unconditionally and freely available for use.

Letter of Credit: A document issued by a financial services provider on behalf of a customer that guarantees payment to a third party upon fulfillment of the terms of a contract between the customer and the third party.

Spot: A method of buying or selling foreign currency in which the value date follows within two working days of the trade date. Products commonly "sold at spot" include foreign currency drafts and wires.

Value Date: The date on which "good funds" settlement is made for a transaction. Until the value date, funds are not available for use.

Wire Transfers or Telegraphic Transfers: An electronic payment order issued through bank channels.