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Forward points

Forward points refer to the pips or the amount of pips added to or subtracted from the current spot rate to determine the forward rate. The forward points represent the difference between the forward rate and the current spot rate and can be positive or negative. The forward points are influenced by various factors such as interest rate differentials, time to maturity, and market expectations. Forward points are commonly used in foreign exchange trading to price forward contracts and calculate the cost of carry.

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