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What Is Meant By A Currency Trading At A Discount Or At A Premium In The Forward Market? |
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Answer» The forward market involves contracting today for the future purchase or SALE of foreign exchange. The forward PRICE MAY be the same as the SPOT price, but usually it is higher (at a premium) or LOWER (at a discount) than the spot price. The forward market involves contracting today for the future purchase or sale of foreign exchange. The forward price may be the same as the spot price, but usually it is higher (at a premium) or lower (at a discount) than the spot price. |
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