Forward Discount

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Dictionary Says

Definition of '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 domestic exchange rate is going to depreciate in value against another currency.
Investopedia Says

Investopedia explains 'Forward Discount'

A forward discount means the market expects the domestic currency to depreciate against another currency, but that is not to say that will happen. Although the forward expectation's theory of exchange rates states this is the case, the theory does not always hold.
Search results for

'Forward Discount'

  • CFA Level 1 Study Guide - Global Economic Analysis - Forward ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/forward-market.asp
    ... 13.1 Introduction; 13.2 Security Valuation; 13.3 The Dividend Discount Model (DDM ...
    Bond Valuation; 14.43 Differentiating Between Spreads; 14.44 What are Forward Rates ...

  • Using Interest Rate Parity To Trade Forex

    http://www.investopedia.com/articles/forex/08/interes-rate-parity.asp
    ... If this difference (forward rate – spot rate) is positive, it is known as a forward
    premium; a negative difference is termed a forward discount. ...

  • CFA Level 1 Study Guide - Derivatives - Forward Contracts on Bonds ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/forward-contracts-on-bonds.asp
    ... 13.1 Introduction; 13.2 Security Valuation; 13.3 The Dividend Discount Model (DDM ...
    Bond Valuation; 14.43 Differentiating Between Spreads; 14.44 What are Forward Rates ...

  • CFA Level 1 Study Guide - Equity Investments - The Dividend ...

    http://www.investopedia.com/exam-guide/cfa-level-1/equity-investments/ddm-dividend-discount-model.asp
    ... 13.1 Introduction; 13.2 Security Valuation; 13.3 The Dividend Discount Model (DDM ...
    Bond Valuation; 14.43 Differentiating Between Spreads; 14.44 What are Forward Rates ...

  • Costco Needs A Discount

    http://stocks.investopedia.com/stock-analysis/2009/Costco-Needs-A-Discount-COST-WMT-TGT1009.aspx
    ... Discount-warehouse retailer Costco (Nasdaq:COST) closed out its fiscal year on
    Wednesday on a positive note, as ... That places Costco's forward P/E at 20.5 times. ...

  • CFA Level 1 Study Guide - Fixed Income Investments - What are ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/forward-rates.asp
    ... 13.1 Introduction; 13.2 Security Valuation; 13.3 The Dividend Discount Model (DDM ...
    Bond Valuation; 14.43 Differentiating Between Spreads; 14.44 What are Forward Rates ...

  • CFA Level 1 Study Guide - Global Economic Analysis - Interest ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/interest-applications.asp
    ... 13.1 Introduction; 13.2 Security Valuation; 13.3 The Dividend Discount Model (DDM ...
    Bond Valuation; 14.43 Differentiating Between Spreads; 14.44 What are Forward Rates ...

  • Discount Is The New Trendy

    http://stocks.investopedia.com/stock-analysis/2010/Discount-Is-The-New-Trendy-TJX-HOTT-TGT-BIG-FDO-DLTR-DDS0226.aspx
    ... Nasdaq:HOTT), both which fetch over 22 times forward earnings. The Vote Is In Consumers
    vote with their wallets and the vote is in. The discount retailer is ...

  • Discount Retailers - A Year In Review

    http://stocks.investopedia.com/stock-analysis/2009/Discount-Retailers---A-Year-In-Review-TGT-WMT-DLTR1228.aspx
    ... sense. Discount chains, after all, stock vast selections of merchandise at low
    prices. ... spring. Going forward, this space should fare well. ...

  • Are Dollar Discount Stores Running Out Of Room?

    http://stocks.investopedia.com/stock-analysis/2011/Are-Dollar-Discount-Stores-Running-Out-of-Room-FDO-WMT-DG-DLTR-AMZN0711.aspx
    ... its aftermath have been a very positive catalyst for the dollar discount stores. ...
    even that behavior may not be enough to spark additional growth going forward. ...

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