Forward Margin

Forward Margin
The difference between the spot rate and the estimated future rate for a certain commodity. The forward margin on foreign currency, for instance, would typically be specified as number of points over or under the spot rate.

The difference between the two rates can either be a premium or a discount depending if its above or below the spot rate. If you add or subtract the forward margin to the spot rate, you would get the forward rate.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • Forward Margin —    The discount or premium between the spot and forward rates for a forward foreign exchange transaction. It represents the interest rate differential between the two currencies traded.    ► See also Discount, Premium …   Financial and business terms

  • forward margin — See: forward points …   Accounting dictionary

  • forward margin — See forward points …   Big dictionary of business and management

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  • forward points — forward differential; = forward margin The amount to be added to or deducted from the spot foreign exchange rate to calculate the forward exchange rate …   Accounting dictionary

  • forward points — forward differential; forward margin The amount to be added to or deducted from the spot foreign exchange rate to calculate the forward exchange rate …   Big dictionary of business and management

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