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Forward Quotations : Forward rates can be expressed in two ways. Commercial customers are usually quoted the .actual price which is referred to the outright rate. On the other hand, in the interbank market, dealers quote the forward rate only as a discount from, or a premium on the spot rate. This - forward differential is known as the swap rate.
If the forward exchange rate for a currency is higher than the current spot rate, it is said to be trading at a premium for that forward maturity. If the forward rate is below the spot rate, then the currency is said to be trading at a discount. If the forward rate is the same as the spot rate, then it is said to be a; par with the spot rate but it happens only rarely.
Foreign Exchange Transactions : A foreign exchange transaction is ultimately the purchase or sale of one national currency against another arising out of import or export of goods
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