forward price

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Also found in: Financial.
Related to Forward exchange rates: Forward premium

forward price

The price for a physical commodity to be delivered at some agreed time in the future. Forward prices are used in futures trading.
References in periodicals archive ?
And those facing a foreign exchange crunch reposition themselves, knowing that both ready and forward exchange rates would be affected once this happens.
(9) We further empirically examine the informational content of forward exchange rates and discuss the role of liquidity in the predictive power of the forward exchange rates.
Our sample dataset consists of bid and ask quotes for both spot and forward exchange rates of three currencies: Australian dollar, British pound, and US dollar.
The expectations theory of forward exchange rates maintains that the expected spot exchange rate t periods in the future equal the t-period forward rate, so the PPP must hold for every period of t in equilibrium:
The third interim dividend will be payable on 11 December 2013 in cash in USD, GBP or HKD, or a combination of these currencies, at the forward exchange rates quoted by HSBC Bank plc in London at or about 11.00am on 2 December 2013, or as a scrip dividend.
The analysis is based on quarterly data of spot and 3-month forward exchange rates plus 3-month USD Libor and 3-month EUR Libor interbank interest rates.
Therefore, the existence of a cointegrating relationship between spot and forward exchange rates casts doubt on the validity of the 'traditional' tests described above (a).
In the short term, accurate interest rate forecasting can help determine potential changes in the forward exchange rates. In more efficient markets, such as the Eurocurrency markets, forward exchange rates are based on both current and future expectations of the interest rate differential.
This is because forward exchange rates (like bonds) have a built in market illiquidity premium, which would vary with country and time period.
It is a link to short term interest rates, spot and forward exchange rates of two or more different currencies.
It is widely accepted that forward exchange rates are not unbiased predictors of future spot exchange rates and therefore there is nonzero returns to forward speculation.
This was despite an increase in UK sterling and Euro SWAP rates, the difference between the forward exchange rates and the spot rates.

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