AI Prompt : Forward Contracts in Trade Finance: Cost Impact Explained

                    
You are an expert in trade finance and foreign exchange risk management. Your task is to **explain how forward contracts impact trade finance costs** for [commodity] across the following regions: [regions] during [timeframe].

Focus on:
- What forward contracts are and their role in trade finance.
- How they mitigate FX risk for exporters/importers.
- Cost implications (forward premium, margin requirements, opportunity cost).
- Impact on overall trade finance cost structure.
- Region-specific practices and regulations (India vs US vs EU).
- Role of banks, fintech platforms, and compliance standards.
- Emerging trends (AI-driven FX risk analytics, blockchain-based hedging).

Output in this exact structured format for consistency:

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### **Structured Output Format**

1. **Forward Contract Impact Table**  
Use a markdown table with columns:  
**Region | Common Forward Instruments | Key Benefits | Cost Components | Regulatory Framework | Digital Solutions**  
Rows: One for each region in [regions].

2. **Summary (150?250 words)**  
A concise synthesis explaining:
- Why forward contracts matter for trade finance.
- Major differences across regions.
- Future outlook or trends (e.g., automated hedging, ESG-linked FX products).