They allow traders to lock in prices for fixed amounts of bonds, commodities, stock indexes or currency on some future date. (nicholasfunds.com)
A forward contract is a customized contract between two parties to buy or sell an asset at a specified price on a future date. (investopedia.com)
ETFs using this strategy employ instruments called currency forwards, which allow them to lock in a specific exchange rate on a future date. (moneysense.ca)