discount means that the forward exchange rate is lower than the spot exchange rate, which corresponds to "premium". Under normal circumstances, the number of discounts quoted by banks is only two or three digits. If it is a two-digit number, it is the third and fourth digits after the decimal point. If it is reported as a three-digit number, it is the second, third and fourth digits after the decimal point. The size of the premium number and the order of the two numbers are also different according to the premium or premium. Under direct quotations, the large number comes first and the decimal number comes last, which is the discount. Under the indirect pricing method, the decimal number comes first and the large number comes last, which is a discount.

In the futures market, if the spot price is lower than the futures price, the basis is negative, and the forward futures price is higher than the recent futures price. This situation is called "futures premium", also known as "spot discount", and the part of the forward futures price that exceeds the recent futures price is called "futures premium rate"; If the forward futures price is lower than the recent futures price and the spot price is higher than the futures price, the basis is positive, which is called "futures discount" or "spot premium". The part of the forward futures price lower than the recent futures price is called "futures discount rate".

another explanation: discount is an industry term. For CIF trade, discount usually means freight+management fee+profit. For FOB trade, it does not include freight and management fees incurred during transportation. General traders will quote their customers a discount on when and where to deliver the goods. CP+ discount is the actual cost price. Because CP is only a listed reference price, and the spot price is often higher than CP according to the abundance or shortage of goods, in order to reflect the constant CP in CP+ discount, the discount price often fluctuates, and sometimes there will be zero discount or negative discount when the goods are abundant. The fluctuation of quality will have a certain impact on the discount, but the main thing is to look at the freight and CP price mentioned above.