Definition Of

Forward Premium

Forward Premium is the term applied to a foreign currency which is more expensive to trade forward than for spot settlement. A forward premium favours the seller of a foreign currency.

Share it:  Cite

More from this Section

  • Yield Interest Rate
    Yield Interest Rate is the actual rate of interest expressed as a rate percentage per annum relating to the net proceeds or outlay. This
  • Life insurance policies
    Life insurance policies is the contracts that promise cash payments beneficiaries when the death of a policyholder occurs.
  • Information systems
    Information systems allows use of computer technology in the processing and storage of information and elimination of many routine tasks.
  • Fundamentals of Balance of payments Accounting
    The BOP must balance. If it does not, something has not been counted or has been counted improperly. It is therefore incorrect to state that BOP is in disequilibrium.
  • Blocked funds
    Blocked funds— funds in one country’s currency that may not be exchanged freely for foreign currencies because of exchange controls. It refers when a government ...
  • Title Deeds
    Title Deeds are documents which prove who owns a property and under what term
  • Cost-plus-profit deposit pricing
    Cost-plus-profit deposit pricing is the charging customers for the full cost or a significant portion of the total cost of any deposit services they use.