What is the main characteristic of a 'forward trade'?

A forward trade is primarily characterized by its ability to guarantee a fixed exchange rate for future transactions. This mechanism allows parties involved in a forward trade to lock in the exchange rate now for a transaction that will occur at a specified future date. This is particularly useful for businesses and investors who wish to hedge against potential currency fluctuations that could impact their costs or revenues.

By securing a fixed rate, companies can effectively plan their budgets and financial forecasts without the uncertainty associated with changing exchange rates. This forward contract thus serves as a risk management tool, providing stability in cash flows related to foreign transactions.

The other options do not accurately reflect the nature of forward trades. Immediate settlement is characteristic of spot trades, not forward trades, which involve future settlement. While forward trades can sometimes involve high-value transactions, they are not exclusively limited to such. Additionally, forward trades deal with foreign exchange rather than being categorized as domestic payments.