forward cover

...A transaction to avoid the risk (exchange risk) that may arise from holding foreign currency-denominated credits and liabilities. It often uses the forward foreign exchange market, and in this case it is sometimes called forward cover. As an example of forward cover, a Japanese exporter who has signed a dollar-denominated export contract cannot collect the payment (in dollars) until a certain period of time has passed since the contract was signed, so it is uncertain how much this payment will be worth in yen at the time it is received.

*Some of the terminology explanations that mention "forward cover" are listed below.

Source | Heibonsha World Encyclopedia 2nd Edition | Information

…外貨建ての債権･債務を保有することから生じうる危険(為替リスク)を回避するための取引のこと。先物外国為替市場を利用することが多く，この場合をとくに先物カバーforward coverと呼ぶこともある。先物カバーの一例をあげると，ドル建て輸出契約を結んだ日本の輸出業者は，契約後一定期間を経過しなければ，代金(ドル建て)を回収できないので，この代金が，受け取ったその時点で，円建てでいくらに相当するかは不確定である。…

※「forward cover」について言及している用語解説の一部を掲載しています。

出典｜株式会社平凡社世界大百科事典 第２版について | 情報