Trading companies need yen, that is, the exchange rate is 1: 152.88.
Premium refers to determining whether the forward exchange rate is rising or falling by analyzing the exchange rate trend. If the forward exchange rate is more expensive than the spot exchange rate, it is a premium, otherwise it is a discount, and the corresponding rising and falling prices are the premium amount and the discount amount.
1. Under the direct price label:
Forward exchange rate = spot exchange rate+premium (-premium)
2. Under the indirect price label:
Forward exchange rate = spot exchange rate-premium (+premium)
The amount of discount can be expressed in terms of amount or points.
1. Forward exchange rate is the symmetry of "spot exchange rate". The exchange rate of forward foreign exchange transactions. Usually stipulated in the forward foreign exchange transaction contract. When the forward contract expires, no matter how the spot exchange rate changes, the buyer and the seller shall make delivery according to the forward exchange rate stipulated in the contract. The difference between forward exchange rate and spot exchange rate is called forward spread, or forward exchange rate, which is usually expressed by premium, discount or parity. The forward exchange rate of a country's currency is higher than the spot exchange rate, which is called premium, and the forward exchange rate is lower than the spot exchange rate, which is called discount. Both are called parity. According to exchange rate parity, forward spread usually reflects the spread between two currencies. That is, currencies with high interest rates generally show discounts, while currencies with low interest rates generally show premiums. Forward exchange rate is directly related to the profit and loss of hedging, arbitrage and speculation by using forward foreign exchange transactions.
2. Spot exchange rate, also known as spot exchange rate, refers to the price of a currency currently traded in the spot market. It is the exchange rate for delivery within two working days after the two parties reach a foreign exchange transaction agreement. This exchange rate is generally the current exchange rate in the foreign exchange market.
3. The spot exchange rate is determined by the relationship between supply and demand of money at the time of spot delivery. The exchange rate listed in the general foreign exchange market generally refers to the spot exchange rate, except the forward exchange rate.