Forward Points
Definition
The difference between the spot exchange rate and the forward exchange rate, expressed in pips. Forward points reflect the interest rate differential between two currencies.
Formula / Rules
Forward Rate = Spot Rate + Forward Points
Example
Positive forward points indicate the forward rate is higher than spot, reflecting the rate differential.
Related Terms
Frequently Asked Question
What are Forward Points in Forex?
Forward points are the pip difference between the spot and forward exchange rate, reflecting the interest rate differential between two currencies. Positive = forward rate above spot.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.