Secured Loans
Annualized percentage difference between spot and forward rates.
Forward discount
A currency trades at a forward discount when its forward price is lower than its
spot price.
Forward exchange rate
Exchange rate fixed today for exchanging currency at some future date.
Forward Fed funds
Fed funds traded for future delivery.
Forward forward contract
In Eurocurrencies, a contract under which a deposit of fixed maturity is agreed to
at a fixed price for future delivery.
Forward interest rate
Interest rate fixed today on a loan to be made at some future date.
Forward looking multiple
A truncated expression for a P/E ratio that is based on forward (expected)
earnings rather than on trailing earnings.
Forward market
A market in which participants agree to trade some commodity, security, or
foreign exchange at a fixed price for future delivery.
Forward premium
A currency trades at a forward premium when its forward price is higher than its
spot price.
Forward rate
A projection of future interest rates calculated from either the spot rates or the
yield curve.
