A modification of the par forward. The standard par forward has a defined maturity. When entering into a rolling par forward, one party has the right to extend the maturity of the transaction. Any extension is transacted at the then market rate and so no optionality exists. At the time of extension, the contracted par forward rate is adjusted to reflect the extended maturity. A rolling par forward where the maturity automatically extends each period in perpetuity is known as a perpetual par forward.
