There is no absolute, mainly according to different parts of the individual and other factors. Premium and discount: the difference between forward exchange rate and spot exchange rate is expressed by premium, discount and flat price. Premium means that the forward exchange rate is higher than the spot exchange rate, while the discount is the opposite. In general, the currency forward exchange rate with higher interest rate is mostly discount, and the currency forward exchange rate with lower interest rate is mostly premium. 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 where the forward futures price is lower than the recent futures price is called "futures discount rate".

The content of this article comes from People's Republic of China (PRC) Financial Code: Application Edition by China Law Publishing House.