A client's forward rate folds the sales margin into the all-in rate
Table of Contents
1. Summary
Forward points are market-driven. A provider's margin is separate, but it is folded into the all-in forward rate, so a client sees one number.
2. Detail
To measure a margin, compare the all-in rate with the market outright at the same time.
3. See also
- FX forwards — the structure note.
- Forward points are the difference between the outright and spot — completes: the market part of the rate.