A foreign exchange swap (FX swap) that starts (comes into effect) to a certain date in the future. This arrangement involves the use of two foreign exchange forward contracts: one for initial exchange and another for re-exchange at maturity date.

For example, a forward-forward may involve a one-month forward sale of Euro against US dollar with a corresponding two month forward contract for re-purchase of Euro. The effect of the transaction is to secure dollars for one month term in one month from now.