Foreign Exchange: Forward/Swap Points Calculation
interactive

Foreign Exchange: Forward/Swap Points Calculation

Updated Jun 25, 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.