If an importer or exporter is having difficulty estimating the future settlement date of receivables or obligations, they can always use hedging in the form of a window forward contract.
Window Forward contracts are based on the same principle as forward contracts, i.e. a precisely defined amount insured by a fixed exchange rate, with the sole exception that the settlement date is variable. The settlement date agreed in advance with a forward is replaced by a three- week interval (1 week before and 2 weeks after the settlement date), during which the currency can be exchanged on any business day at the rate agreed in advance.
This instrument also enables companies to make better use of a fixed rate during calculations in their financial planning.