The three basic relationships between foreign exchange forward or foreign exchange futures and foreign exchange spot are

The three basic relationships between foreign exchange forward or foreign exchange futures and foreign exchange spot include:

Premium: refers to the forward exchange rate or futures exchange rate higher than the spot exchange rate.

Discount: refers to that the forward exchange rate or futures exchange rate is lower than the spot exchange rate.

Parity: refers to the forward exchange rate or futures exchange rate equal to the spot exchange rate.

The above contents are for reference only. For more accurate information, please consult professionals.