What is FORWARD RATE?

(1) The rate quoted for future delivery of an ASSET, used in the calculation of FORWARDS and FUTURES. A quoted forward rate may reflect a FORWARD PREMIUM or FORWARD DISCOUNT. (2) See IMPLIED FORWARD RATE. (1) See also FORWARD PRICE.

More On This Topic



Link to This Definition
Did you find this definition of FORWARD RATE 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