A forward ladder shows each pair's tenors as outrights and points
Table of Contents
1. Summary
A forward ladder shows the tenors of one pair. For each tenor it states the outright and the forward points.
2. Detail
- Standard tenors run from the short dates through 1W to the long end.
- Broken dates fall between standard tenors. Straight interpolation is a poor estimate around turns, such as year end, where adjusted forwards differed by 1 to 15 pips in LSEG's study.
- A forward-forward calculator states a rate between two chosen dates without changing the curve.
3. See also
- FX forwards — the structure note.
- Forward Ladder — exemplifies: a ladder for FX.
- Broken Dates and Turn Points — completes: the non-standard tenors.
- A forward ladder can start from today, tomorrow or spot — completes: where the rows start.