Why investors choose to trade foreign exchange forward contracts

Forward transactions are usually reserved products for institutional customers, banks, brokers and companies.
Forward options are used when one party wants to execute a transaction in foreign exchange on a future date. For example, if you want to buy something from Japan, you won't be charged until a few weeks later. You agree to pay $100 to the person who sells to you, but their local currency is yen.
You can't guarantee that in a few weeks the value of $100 will be the same as the amount of yen today. To avoid you paying more or the seller receiving less, forward contracts are created. In short, a forward contract can lock the price of a currency pair at the current price on a future date.
In trading terms, forward contracts are used for hedging, or to help reduce and manage risk. In essence, if the price of the currency pair falls, the trader will be fully protected, but if the price of the currency pair rises, the trader will not make a profit.