A "Two-Way Forward" is a financial contract used in foreign exchange markets. It allows parties to exchange currencies at a predetermined rate on two future dates. This helps businesses and investors manage currency risk by locking in exchange rates, protecting them from fluctuations. In a Two-Way Forward, one party agrees to buy a currency while simultaneously agreeing to sell another currency. This arrangement is beneficial for companies engaged in international trade, as it provides certainty in budgeting and financial planning. It is commonly used by firms dealing with foreign currencies and international transactions.