Forward exchange rate = spot exchange rate+premium (-premium)

Under the Indirect Price tab:

Forward exchange rate = spot exchange rate-premium number (+discount number) The premium number can be expressed in terms of amount or points.

When the stock index futures price is higher than the spot index price, the stock index futures are in a premium state and the basis is positive;

On the contrary, stock index futures have a premium and a negative basis. Therefore, the basis is a dynamic indicator of the actual operation change between the futures price and the spot price.

Extended data:

Premium and premium change factors:

F stands for the theoretical price of stock index futures, S stands for the market price of spot assets, R stands for the annual interest rate of financing, D stands for the annual yield of holding spot assets, and T stands for the number of days before the contract expires. In the case of simple interest, the theoretical price of stock index futures can be expressed as:

F(t，T)= S(T)+S(T)(r-d)(T-T)/365 = S(T)[ 1+(r-d)(T-T)/365]。

Futures index premium = futures index price-spot price = (futures index market price-futures index theoretical price)+(futures index theoretical price-spot price).

Among them, the former part comes from investors' overestimation or underestimation of stock index futures prices, which can be called value basis difference, mainly caused by market behavior and market sentiment;

The latter part can be called theoretical basis, which mainly comes from holding cost (regardless of transaction cost, etc. ), and the main influencing factors are financing cost, dividend during the period and time to maturity.

In general, the theoretical basis must exist before the expiration of the contract, but the value basis does not necessarily exist. The smaller the absolute value of the value base, the smaller the volatility, which means the higher the market efficiency.

Therefore, on the whole, it is four reasons, such as stock market dividend, financing cost, time to maturity and market sentiment, that lead to the change of futures index premium.

Reference source: Baidu Encyclopedia-Rising premium.