Forward points: Difference between revisions
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And the one-month forward points are 5-8 (rising); | And the one-month forward points are 5-8 (rising); | ||
Then the one-month forward exchange quote is GBP 1 = 1.6005 - 1.6018 USD. | Then the one-month forward exchange quote is GBP 1 = 1.6005 - 1.6018 USD. | ||
== See also == | == See also == | ||
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* [[Spot rate]] | * [[Spot rate]] | ||
* [[Swap points]] | * [[Swap points]] | ||
[[Category:Manage_risks]] | |||
Revision as of 13:43, 9 October 2013
Forward points (for example one month forward points of 5-8) are a conventional short-form method of quoting multiple forward foreign exchange rates, by reference to the related foreign exchange spot quote.
The spot foreign exchange quote is adjusted by applying, for example, the one-month forward points to it, to calculate the full one month forward foreign exchange quote.
For example if the spot foreign exchange quote is GBP 1 = 1.6000 - 1.6010 USD; And the one-month forward points are 5-8 (rising); Then the one-month forward exchange quote is GBP 1 = 1.6005 - 1.6018 USD.
