DEFINITION of 'earning of points' Information:
The term of trade in currency which describes when the forward ask the price, below, than the spot offer price resulting in benefit for the dealer. The dealer receives points when he or she sells at one price, now then agrees to buy for less in the future. Obtaining point only belongs to distinction between, sell and buy the prices, and doesn't take the cost of money in time into account.
It is contrast of "loss of points".
2019 - Earning of points
Earning of points, Information - 2019
DESTRUCTION of 'earning of points' Information:
If the person sells in, ask the price in the market of cash goods above, buys at lower price of the offer in the future market, he or she receives points.
For example, assume that Peter sells the British pound in 2.2055 dollars for the British pound in a spot and signs the forward contract to redeem pound in 2.2000 dollars for pound in the future. Peter receives points in this case 0.0055 dollars for pound.
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