In the context of foreign exchange, which market allows for future contracts?

The forward market is specifically designed for future contracts, which are agreements to exchange a specified amount of a currency at a predetermined price on a future date. This market allows participants to hedge against potential fluctuations in exchange rates, providing a mechanism for businesses and investors to lock in prices and manage their foreign exchange risk. Unlike the spot market, which involves immediate currency exchange transactions at current market rates, the forward market focuses on future obligations and commitments. Thus, when discussing the context of foreign exchange and the specific nature of future contracts, the forward market is the only appropriate choice.