Use the forward rate calculator to determine the forward rates of multiple currency pairs – USDINR, EURINR, GBPINR and JPYINR. Myforexeye’s forex calculator offers an extremely user friendly tool to calculate the forward rate for exports and imports for any maturity upto next one year. Compute the forward rate using Myforexeye forward premium calculator by entering the relevant details.Once all the details are entered, the calculator shows the following:
Forward rate is the price at which the two parties agree to buy/sell a particular currency at a pre-determined future date or period. A forward contract is a customized agreement between two parties to buy/sell a particular currency at a rate agreed today for a delivery at a pre-determined future date or period. An exporter/importer does a forward contract with the bank as counter-party.
Forward contracts are of two types:
It allows the importer/exporter to protect itself from adverse currency movements by locking in a fixed exchange rate for a future date or period. Forward rates booked in forward contracts forward contracts eliminates the currency risk that arises out of the volatile in exchange rate movements.
Just like spot rates are quoted and traded in the forex markets, forward premiums/discounts are also quoted and traded. Forward Rate = Spot Rate + Forward Premium Forward Rate = Spot Rate - Forward Discount Myforexeye forward rate calculator helps in calculating the forward premiums or forward discounts for various currency pairs.
Forward rates are derived from spot rates. Depending upon the differential of interest rates between two currencies of an exchange rate, one currency will be at a premium or a discount vis-à-vis the other currency.
For USDINR, forward rate calculations are quite simple. For cross currency INR forward rates, such computations can become quite confusing, tricky and time consuming. Myforexeye forex calculator is an efficient tool to quickly calculate the forward rates for all the major cross currency INR pairs across various maturities. In addition to the market vectors of spot and forward premiums, the forward premium calculator also displays the annualized percentage of the forward premiums.