Skip to main content
Trading Terms

Forward premium

A forward premium is a financial term used to describe the condition in which a foreign currency is priced higher for future trading compared to its current spot settlement price. This means that the seller of the foreign currency, such as an exporter, will receive a higher amount of their home currency in exchange. This is because the forward premium is always deducted from the spot rate, giving the seller an advantage.

Related terms

Out Trade

Understand the meaning and definition of Out Trade in the context of stock market, trading, and investments.

MORE
Penny Stocks

Understand the meaning and definition of Penny Stocks in the context of stock market, trading, and investments.

MORE
Sensitivity

Understand the meaning and definition of Sensitivity in the context of stock market, trading, and investments.

MORE
Annual Earnings Change

Understand the meaning and definition of Annual Earnings Change in the context of stock market, trading, and investments.

MORE
Time draft (time bill)

Understand the meaning and definition of Time draft (time bill) in the context of stock market, trading, and investments.

MORE
Certificate of Deposit

Understand the meaning and definition of Certificate of Deposit in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91