Forward Rates
Forward rates are usually negotiated for delivery one month, three months, or one year after the date of the contract's creation. They usually differ from the spot rate and from each other. If one currency is expected to depreciate against a second, it is said the first currency is selling at a discount on the forward market. The term selling at a premium on the forward market is used for cases in which appreciation is expected.
Read more about this topic: Forward Exchange Market
Famous quotes containing the word rates:
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—Grace Baruch (20th century)
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—Henry Brooks Adams (1838–1918)