Forward exchange rate is the agreed upon exchange rate to be
used in a forward trade.
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forward exchange rate can be computed from spot exchange by
adding or subtracting premium ir discount. also forward rate can be
at forward premiun of discount when comapred to spot exchange
rate.
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The 'Dynamic balance rate' of forward process equals the rate of the backward (reversed) reaction
A + B --> P + Q Let the forward rate be Rfw
and
P + Q --> A + B the backward rate let it be Rbw
then
Rfw = Rbw at Dynamic (balanced, thermodynamical) Equilibrium
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The expected spot rate can be estimated by observing the
relevant forward rate. E.g. expected spot rate in 90-days can be
estimated by observing the 90-day forward rate.
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The product and reactants reach a final, unchanging level.