Forward premium forward discount and forward parity

The forward premium is the rate at which a currency is above.

A forward discount is when the forward rate is lower than the spot rate.

If the forward premium and the forward discount are equal, it is called forward parity.

Relationship between forward price, spot price and premium: Forward price = spot price + premium (or “-” discount) Renewed risk aversion boosts dollar, wary of global monkeypox spread.

Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.