What best describes a "forward market"?

A forward market is defined as a trading venue where contracts are made to buy or sell currencies at a predetermined price for delivery at a specific future date. This is distinct from a spot market, where transactions occur immediately at current market rates. In the forward market, participants enter into agreements to lock in exchange rates, which helps to mitigate the risk of price fluctuations in the future.

The other options highlight different aspects of financial markets but do not correctly define what a forward market is. The first choice refers to spot rates, which involve immediate transactions rather than future ones. The third choice mentions derivatives linked to currency exchange rates, which can include a variety of financial instruments, not limited to forward contracts. Lastly, the fourth option discusses cryptocurrency trading, which is unrelated to the traditional concept of a forward market in currency exchange.