1. In the stock market, the discount phenomenon is usually related to market sentiment and investor psychology. When the market is in a state of panic, investors may sell stocks excessively, causing the stock price to fall, resulting in a discount. In addition, if the company's fundamentals change, such as falling profits and deteriorating financial conditions. This may also lead to a decline in the stock price, which in turn leads to a discount.
2. It should be noted that discount is a relative concept and needs to be compared with the overall market performance and industry trends. If the discount phenomenon of a stock persists, it may mean that there are persistent problems in the company's fundamentals or market sentiment, which need investors' careful consideration.
3. In the futures market, the discount refers to the difference between the forward futures price and the recent futures price. This is because the price of forward futures is based on the expectation of future market conditions, while the price of recent futures is a reflection of current market conditions. Therefore, when the market expects the future market to rise, the forward futures price will be higher than the recent futures price, resulting in a discount.
4. In the futures market, the discount phenomenon is influenced by many factors such as supply and demand, policy factors and economic data. When the relationship between supply and demand in the market is unbalanced, it will lead to fluctuations in futures prices, and then generate discounts or reverse discounts. In addition, policy factors and economic data will also affect market sentiment and investors' expectations, which will lead to the change of discount or reverse discount.
Definition of discount rate
1. discount rate, also known as discount value or premium value, refers to the difference between the forward exchange rate and the spot exchange rate. In currency transactions, this difference reflects the market's expectation of future currency value. When the forward exchange rate is higher than the spot exchange rate, it is called premium, and when the forward exchange rate is lower than the spot exchange rate, it is called discount.
2. The discount rate is calculated by dividing the difference between the forward exchange rate and the spot exchange rate by the spot exchange rate to get a percentage. For example, if the spot exchange rate is 1 USD against RMB in 6.5 yuan and the forward exchange rate is 1 USD against RMB in 6.4 yuan, the discount rate is (6.4-6.5)/6.5=- 1.54%, that is, the discount rate of USD against RMB is-1.54%.
3. The discount rate is usually influenced by many factors, including interest rate spread, exchange rate expectation and the relationship between money supply and demand. In international trade and investment, discount rate is also widely used to evaluate currency risk and investment value.