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 ?
We analyze the liquidity effect of the informational content of forward exchange rates using our test statistic.
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.
f], and spot exchange and forward exchange rates S and F, there are two alternative ways of investing (or borrowing) short-term funds: (1) investing (or borrowing) S units of domestic currency (that is equivalent to one unit of foreign currency) in domestic money markets at [i.
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).
A complete understanding of the past, present, and future real interest rates and inflation rates will help multinationals forecast future changes in nominal interest rates and subsequent changes in the spot and forward exchange rates.
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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