Earning The Points

Filed Under » , ,
Dictionary Says

Definition of 'Earning The Points'

A currency trading term that describes when the forward ask price is lower than the spot bid price, resulting in a gain for the trader. A trader is gaining the points when he or she sells at one price now then agrees to buy for less in the future. Gaining the point only refers to the difference between sell and buy prices and does not take the time value of money into account.

This is the opposite of "losing the points".

Investopedia Says

Investopedia explains 'Earning The Points'

If the individual sells at the higher ask price in the spot market, then buys at a lower bid price in the futures market, he or she is gaining the points.

For example, suppose that Peter sells the British pound at 2.2055 dollars per British pound in the spot and enters into a forward contract to buy the pound back at 2.2000 dollars per pound in the future. Peter is gaining the points, in this case 0.0055 dollars per pound.
Search results for

'Earning The Points'

  • What You Should Know About Rewards Devaluation

    http://www.investopedia.com/articles/pf/12/rewards-devaluation.asp
    ... therefore not only complicates rewards programs utilizing virtual currency, but
    also casts an aura of uncertainty over anyone earning points or miles. ...

  • How Much Do You Need To Spend To Earn Credit Card Points? ...

    http://financialedge.investopedia.com/financial-edge/1211/How-Much-Do-You-Need-To-Spend-To-Earn-Credit-Card-Points.aspx
    ... There is also no threshold spending requirement before you can start earning 1%
    back on the rest of your purchases. To redeem your points for cash back, you'll ...

  • Uncover Forex Profits With The Turn Trade

    http://www.investopedia.com/articles/forex/08/turn-trade.asp
    ... it fell out of the upper Bollinger 3SD-2SD band channel did we exit the rest of
    the position at 1pm EST on March 16, 2006, at 1.5692, earning 57 points on the ...

  • Drawbacks Of Travel Reward Programs

    http://www.investopedia.com/articles/pf/08/frequent-flyer.asp
    ... Before signing up, consumers should consider whether the fee is worthwhile compared
    to the number of points they anticipate earning and compared to competitors ...

  • Best Loyalty Programs For 2011 - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/Aug-10-Best-Loyalty-Programs-for-2011.aspx
    ... Many Citibank credit cards offer generous signup bonuses and allow cardholders to
    accumulate multiple points per $1 spent, so earning Thank You rewards isn't ...

  • Store Credit Cards: Do The Incentives Pay Off?

    http://www.investopedia.com/articles/pf/11/store-credit-cards-evaluation.asp
    ... every purchase. Earning 5% back on all of your purchases can be a valuable
    reward if you shop frequently at the same store. To determine ...

  • 7 Ways Using Your Credit Card Can Save On Summer Travel ...

    http://financialedge.investopedia.com/financial-edge/0711/7-Ways-Using-Your-Credit-Card-Can-Save-On-Summer-Travel.aspx
    ... if you make a lot of money and use a mileage earning credit card as ... this promotion
    is now expired, the Chase Sapphire card was offering 50,000 points and there ...

  • The Cost Of Variable Annuity Guarantees

    http://www.investopedia.com/articles/pf/06/variableannuity.asp
    ... cost of investment: 15-35 basis points (Note: the figures provided are estimates
    based on a 2004 study by Towers Perrin Inc.) Guaranteed Earning Increase Death ...

  • 4 Ways To Get The Most From Your Credit Cards This Cyber Monday ...

    http://financialedge.investopedia.com/financial-edge/1111/4-Ways-To-Get-The-Most-From-Your-Credit-Cards-This-Cyber-Monday.aspx
    ... Points are redeemable for gift cards, merchandise, travel and other goodies. ... so if
    you exceed those limits, you should switch cards to keep earning cash back. ...

  • Earnings Forecasts: A Primer

    http://www.investopedia.com/articles/stocks/06/earningsforecasts.asp
    ... Read More »; A Look At Exit Strategies. Setting appropriate exit points should
    help you avoid taking premature profits or ... Read More »; ...

Related Articles

Trading Center
Partner Links