Forums

Forex

AFM

Hello Sir, What is the difference between forward rates and future spot rates?


Suresh Avinash

Suresh Avinash

CA Final

3K+

11-Mar-23 05:56

276

Answers (3)

Forward rates - A rate which is quoted today for settlement in future. Say rate for 31st March quoted today Future spot rate - The actual spot rate on 31st March


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

11-Mar-23 05:57

Forward rate is a rate quoted in the market today for a transaction at a future date. You can execute transactions at this rate today itself. Eg on March 1st itself you can agree to buy 1 dollar on April st for INR 83 Future spot is rate that is expected. You will not know this rate till actual date.


Sriram Somayajula

Sriram Somayajula

Admin

11-Mar-23 05:59

CFA Webinar
ibs launch
Tally + Excel Free