forward discount

forward discount
A currency trade at a forward discount when its forward price is lower than its spot price. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • Forward Discount — In a foreign exchange situation where the domestic current spot exchange rate is trading at a higher level then the current domestic futures spot rate for a maturity period. A forward discount is an indication by the market that the current… …   Investment dictionary

  • Forward discount — A currency trades at a forward discount when its forward price is lower than its spot price. The New York Times Financial Glossary …   Financial and business terms

  • Forward discount —   Negative forward points …   International financial encyclopaedia

  • discount — a deduction made from the normal cost or purchase price. Glossary of Business Terms 1) Quality differences between those standards set for some futures contracts and the quality of the delivered goods. If inferior goods are tendered for delivery …   Financial and business terms

  • Forward premium — The term forward premium, as used in currency trading, refers to the premium (or discount) resulting from a forward contract to be executed in the future at a forward rate. The premium is calculated as follows:((forward rate spot rate)/spot… …   Wikipedia

  • Forward contract — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Discount Fireworks — Compilation album by Over the Rhine Released February 6, 2007 …   Wikipedia

  • Discount — Referring to the selling price of a bond, a price below its par value. Related: premium. The New York Times Financial Glossary * * * ▪ I. discount dis‧count 1 [ˈdɪskaʊnt] noun [countable] 1. COMMERCE a reduction in the cost of goods or services… …   Financial and business terms

  • Discount Spread — Currency forward points that are subtracted from the spot rate, to obtain a forward rate for a currency. In the currency markets, forward spreads or points are two way quotes, that is, they have a bid price and an offer price. In a discount… …   Investment dictionary

  • discount — noun / dɪskaυnt/ 1. the percentage by which the seller reduces the full price for the buyer ● to give a discount on bulk purchases ♦ to sell goods at a discount or at a discount price to sell goods below the normal price ♦ 10% discount for cash… …   Dictionary of banking and finance

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