What is FORWARD PREMIUM?

A FORWARD PRICE (or rate) for future delivery of an ASSET that is higher than the SPOT PRICE (or rate) for immediate delivery. See also FORWARD DISCOUNT.

More On This Topic



Link to This Definition
Did you find this definition of FORWARD PREMIUM helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary