A Leveraged Forward contract is an over-the-counter derivative product that allows holders to lock-in more favourable exchange rates than an outright forward for part of their exposure as well as to benefit from favourable market movements using leverage. The leverage defines the amount of risk the hedger is willing to assume. Due to their complex character, leveraged forwards are not the most suitable products for corporate treasurers wishing to protect their profits from FX risks. Leveraged forwards can have a negative market value and may involve costs if holders want to close out the position prior to contract expiration.