Forward Spread
Difference between forward price and spot price
Forward spread is a trading term used to define the difference in the price of an asset between two time periods. The spread is calculated by taking away the current price of the asset from the future price. It is defined as a forward spread because it is always looking forward.
For example, assume the price of an asset currently is $1.90 and the price of it in one months time is $1.93, the forward spread is 3 basis points.
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