Forward Points

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Dictionary Says

Definition of 'Forward Points'

The number of basis points added to or subtracted from the current spot rate to determine the forward rate. When points are added to the spot rate, there is a forward points premium; when points are subtracted from the spot rate, there is a points discount.
Investopedia Says

Investopedia explains 'Forward Points'

The number of forward points on a given exchange rate will be determined by the prevailing interest rates in each market, the time period between the spot and forward rate, and other market factors. For example, if the current spot rate of the USD/EUR is 0.7232 and the two-year forward rate is 0.7332, the number of forward points is 100 basis points (0.7332-0.7232).
Search results for

'Forward Points'

  • CFA Level 1 Study Guide - Derivatives - Currency Forward Contracts ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/currency-forward-contracts.asp
    Discusses the uses and key points of currency forward contracts. Provides an example
    of how corporations use currency forwards to hedge risk. ...

  • AutoZone Keeps Charging Forward

    http://stocks.investopedia.com/stock-analysis/2010/AutoZone-Keeps-Charging-Forward-AZO-SHLD-ORLY-AAP0303.aspx
    ... AutoZone Keeps Charging Forward. ... Gross profit margin increased by 36 basis points
    while operating expenses were down by 20 basis points. ...

  • Fed Ex Flies Forward

    http://stocks.investopedia.com/stock-analysis/2010/Fed-Ex-Flies-Forward-FDX-UPS-HD-LOW0322.aspx
    ... Fed Ex Flies Forward. ... FedEx express segment saw revenue increase 8%, operating income
    increase of fivefold and operating margins up by over 400 basis points. ...

  • Forward Motion In Tech

    http://stocks.investopedia.com/stock-analysis/2010/Forward-Motion-In-Tech-RIMM-AAPL-PALM0310.aspx
    ... of the above-mentioned upgrade, the shares shot higher by nearly four points on
    heavy ... Going forward, Apple will continue to be instrumental in and have a big ...

  • Nike Still Running Forward

    http://stocks.investopedia.com/stock-analysis/2011/Nike-Still-Running-Forward-NKE-DKS-WMT-DKS-JWN1229.aspx
    ... Positive currency fluctuations accounted for two percentage points of the reported
    growth ... NYSE:JWN) has consistently pushed the top line forward while the ...

  • Variable Prepaid Forward Contract: Scam Or Safety Net?

    http://www.investopedia.com/articles/stocks/09/variable-prepaid-forward-contract.asp
    ... selling some or all of their shares, variable prepaid forward contracts provide ... Setting
    appropriate exit points should help you avoid taking premature profits ...

  • Find Turning Points With Single-Day Patterns

    http://www.investopedia.com/articles/trading/09/single-day-patterns.asp
    ... into runaway gaps, as they often signal an intensifying trend going forward. ... Finding
    Turning Points with Island Reversals Island reversals are single price bars ...

  • Relative Strength Index And Its Failure-Swing Points

    http://www.investopedia.com/articles/technical/03/042203.asp
    ... Fast forward to Feb. ... Conclusion The key to successful trading when using the
    relative strength index is recognizing failure-swings points. ...

  • Backtesting And Forward Testing: The Importance Of Correlation

    http://www.investopedia.com/articles/trading/10/backtesting-walkforward-important-correlation.asp
    ... between in-sample and out-of-sample backtesting and forward performance testing ... Setting
    appropriate exit points should help you avoid taking premature profits ...

  • Using Interest Rate Parity To Trade Forex

    http://www.investopedia.com/articles/forex/08/interes-rate-parity.asp
    ... In the above example, the swap points amount to 50. If this difference (forward
    rate – spot rate) is positive, it is known as a forward premium; a negative ...

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