forward rate agreement

In finance, a forward rate agreement (FRA) is a forward contract in which one party pays a fixed interest rate, and receives a floating interest rate equal to a reference rate (the underlying rate). The payments are calculated over a notional amount over a certain period, and netted, i.e. only the differential is paid. It is paid on the termination date. The reference rate is fixed zero, one or two days before the termination date, dependent on the market convention for the particular currency. FRAs are over-the counter derivatives. A swap is a combination of FRAs.
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Agreement to borrow or lend at a specified future date at an interest rate that is fixed today .

An agreement whereby one party undertakes to pay another party a certain interest rate on a certain principal amount for a certain period of time beginning at some point in the future.

CONTRATTO DIFFERENZIALE SUL TASSO D'INTERESSE [BORSE FINANZIARIE]. FRA [BORSE FINANZIARIE]