A form of the range forward contract which has some type of participation in the movement of the underlying below the lower or bottom strike or above the upper strike or both. The forward plus is a step further than the participating forward. It gives the holder a perfect hedge at the lower strike, while allowing trading at spot prices in a range above the bottom strike up to an agreed upper strike.

A forward plus is structured as a zero premium call option that is struck a bit out-of-the-money along with a trigger that is set below the market rate. If activated, the trigger will impact the final payoff. If the spot rate is above the trigger level (during the life of the contact), the holder will still have the right to purchase the underlying at the strike rate. And if the spot remains below the trigger level, the holder will have to take delivery of the underlying at the strike rate.

The forward plus is also known as a participating range forward.