Forward points

How it is used

Use with a stated quotation scale; points are not a forecast of currency appreciation.

Example sentences

1. The dealer added the forward points to the spot quotation.

   The quoted adjustment converts the spot rate into a forward rate.

2. Forward points changed after the interest differential between the currencies widened.

   Relative funding rates influence the forward adjustment.

Common collocations

• quote forward points
• forward points curve

Related terms

• forward contractAn agreement to buy or sell an amount of currency or another asset on a future date at a price fixed today.
• exchange rateThe price of one currency in terms of another, for example how many Turkish lira you need to buy one euro.

More terms: Interest & Exchange Rates

• interest rate
• fixed rate
• variable rate
• APR
• foreign exchange
• compound interest
• maturity
• basis point
• policy rate
• inflation
• spread
• accrue