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Foreign Exchange: Forward/Swap Points Calculation
Updated Jul 26, 2024
What you'll learn
- Here we use the differences in interest rates between two countries to ascertain the forward exchange rate for that currency pairing.
Course Description
The forward points, also known as the swap points, used in a forward outright relate to an interest differential between the two currencies traded for the period between the spot and forward dates. Here we use the differences in interest rates between two countries to ascertain the forward exchange rate for that currency pairing.
