CoachAn outright forward is an agreement to exchange two currencies at a rate fixed today, for value on a date after spot. Its forward points are expressed in pips of the pair: the market quotes forwards as points added to the spot rate.
Examples
Example 16.3 (Three-month USDJPY)
With USDJPY at 156.87, a dollar rate of 3.68% (actual/360) and a yen rate of 0.977% (actual/365), the 91-day forward by Equation 16.1 is 155.8028: forward points of pips of 0.01 yen. A basis of basis points on the yen leg, as defined below, lowers it to 155.7059, pips. The one-day tom-next points are .