what is meant by a currency trading at a discount, Financial Management

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what is meant by a currency trading at a discount

What is meant by a currency trading at a discount or at a premium in the forward market?

Answer: The forward market includes contracting today for the future purchase or sale of foreign exchange. The forward price might be similar as the spot price, but generally it is higher (at a premium) or lower (at a discount) as compared to the spot price.

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