Series 34 Exam » Definitions & Terminology » Forward Point

Forward Point

Forward Point

With regard to a specific currency, the difference between the spot price and the futures price.  The forwards point may be at a premium or a discount.

→ EXAMPLE:

Spot Rate: EUR/USD = 1.2655

Forward Rate: EUR/USD = 1.2661

This means there is 6 forward basis point premium.

Study Guide >> Definitions and Terminology >> Forward Point

This entry was written by vbala, posted on June 1, 2009 at 5:37 pm, filed under Definitions & Terminology. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Post a comment or leave a trackback: Trackback URL.

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  1. By Definitions and Terminology on June 29, 2009 at 6:25 pm

    [...] Forward points [...]

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