FX forward rate calculator

An FX forward locks in an exchange rate for a future date. Under covered interest parity the forward is set so that neither side gains from the interest-rate difference between the two currencies.

Forward rate

1.08836

Forward points: 33.6 pips; Base trades at a forward premium
Annualised premium / discount: 1.240%

1. Ecuación Matemática e Identidad de Valoración

Forward = Spot × (1 + r_quote × days ÷ basis_quote) ÷ (1 + r_base × days ÷ basis_base)

Forward points = Forward − Spot

2. Cómo Utilizar la Calculadora y Parámetros de Entrada

Quote the pair as BASE/QUOTE, e.g. EUR/USD where EUR is the base. Enter the money-market rate for each currency and the number of days to settlement.

Most currencies use an ACT/360 day count; GBP, AUD, NZD, CAD and a few others use ACT/365.

If the quote currency has the higher interest rate, the forward trades at a premium to spot (positive points), and vice versa.

3. Supuestos Prudenciales y Límites del Modelo

Uses simple interest for periods up to a year, as in the money market. Longer tenors are normally priced off swap curves.
Ignores the cross-currency basis, which can move real forward prices away from textbook parity.

4. Preguntas Frecuentes y Notas Cuantitativas (FAQ)

What are forward points in pips?

Forward points are usually quoted in pips: multiply the price difference by 10,000 for most pairs, or by 100 for yen pairs.

Is the forward rate a forecast of the future spot rate?

No. It reflects the interest-rate difference between the two currencies, not an expectation of where spot will be.

¿Cómo pueden los equipos de riesgo auditar los resultados de «FX forward rate calculator»?

QuantCalc Tools publica la fórmula exacta y las convenciones de cálculo en esta página. Los analistas pueden replicar los resultados en Python/Pandas y verificar simultáneamente la licencia de su contraparte en el centro de verificación de QuantCalc Tools.

Aviso legal: Exclusivamente para fines educativos y de investigación cuantitativa; no constituye asesoramiento de inversión. Los resultados dependen de los datos ingresados y los supuestos indicados.