A forward to forward contract is a swap transaction that involves the simultaneous sale and purchase of one currency

Currency

In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...

 for another, where both transactions are forward contract

Forward contract

In finance, a forward contract or simply a forward is a non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed today. This is in contrast to a spot contract, which is an agreement to buy or sell an asset today. It costs nothing to enter a...

s. It allows the company to take advantage of the forward premium without locking on to the spot rate. The spot rate has to be locked onto before the starting date of the forward to forward contract. It is a perfect tool for corporate houses that want to take advantage of the opposite movements in the spot and forward market by locking in the forward premium at a high or low level now.