Business, Legal & Accounting Glossary
The number of basis points added to or subtracted from the spot rate required to calculate the forward rate. A forward points discount occurs when basis points are subtracted from the spot rate, while a forward points premium occurs when points are added. The number of basis points is determined by the interest rates in the market for each currency being traded.
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This glossary post was last updated: 20th November, 2021 | 0 Views.