A type of forward swap which effectively allows investors to move a foreign exchange position from spot to a future date. In other words, this swap moves the position from one date in the future to another date later in the future.

The forward-forward swap combines two forward contracts, i.e., it can be viewed as two separate swaps (usually currency swaps), one of a near-month maturity and the other of a far-month maturity. For instance, a three-month swap and a nine-month swap can both form a forward-forward swap which begins in three months and ends in nine. Therefore, a currency swap of this type entails the purchase of a base currency after three months (this is a 3-month forward) and thereafter the sale of that currency after nine months (this is a 9-month forward).

As a further example, a currency contract may involve the selling of Euro 3-month forward and buying it back in 6-month time. The swap, then, spans a three month period between the 3-month date and the 6-month date.