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Trading Terms

Forward discount

A foreign currency is considered to have a forward discount when its value is lower for a future trade than its current spot settlement. This is beneficial for the buyer of the currency, such as an importer, as it results in a lower cost for the transaction. The forward discount is always added to the spot rate, making it a key factor to consider when engaging in international trade.
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Trading Terms encompass terminology and phrases commonly used in financial markets, including terms
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