Discount: refers to that the forward exchange rate is lower than the spot exchange rate, corresponding to "premium". Under normal circumstances, the discount of bank quotation 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 you quote three digits, it is the second, third and fourth digits after the decimal point. The size of the premium number and the arrangement order of the two numbers are also different according to the premium or the premium. Under the direct quotation, the large number comes first and the decimal number comes last, which is the discount.
Premium: in the money market, premium refers to adding points to the spot price to judge the forward or futures price. Symmetrical with discount. That is, when the quoted currency interest rate is less than the quoted currency interest rate. At this time, the exchange point is a positive number. In this case, the arrangement of exchange rate points is small on the left and large on the right.
The difference between premium and premium
Futures premiums and discounts are for spot prices.
Because futures have delivery time, spot is a continuous contract. There will be some differences in purchase intention.
First of all, the quotation of futures is globally unified and very standard. Either the price is inconsistent, or it is not standard and there is a problem. It is also a normal phenomenon in the market. But many people don't understand.
Premium: futures price >; Spot prices mean that short-term futures are more willing to buy.
Discount: futures price