Forward covers

Dear members,

The company is involving me in forward covers.

I dont have much idea practically.

Can u pls tell me what is margin, premium, discount (that is added/substracted to the spot rate). And on which factors these things vary ?

Also, wen we take spot conversion, there is some addition/substraction to the spot rate depending up on the delivery period. Pls explain me this. How is delivery period is related to variation in spot rate ?

Pls pls reply...

Thanks in adv..

Replies (2)

Better down load the material of Mr Nagendra from this club and read You will understand better 

attached is the file for your reference 

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