Forward Spread

外汇网2021-06-19 13:32:29 130

The price difference between the spot price of a security and the forward price of the same security taken at a specified interval. The forward spad is usually calculated using the forward price one month after the spot price. An at par forward spad is found when the spot price and the forward price are the same.

Taobiz explains Forward Spad

For example: The spot price of the security is 1.02. The forward price, taken one month later, is 1.07. Therefore, the forward spad is 0.05, or 5 basis points.

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