ForeXistenZ › Academy › Book I · Part Three — Forwards, Futures and Swaps
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Their primary weapon is the Forward Contract: a binding agreement to exchange currencies at a predetermined price on a future date. Interest Rate Differential. Every curr…
THE BIG LIE: Forward points are a prediction of where the future spot rate will be. THE UNBREAKABLE TRUTH: Forward points are the pure, cold, mathematical price of the in…
The forward rate has one job and one job only: to surgically remove the advantage of interest rate differentials from the equation. It is the market’s great neutralizer. …
Forget everything you think you know about “minor” and “dominant” currencies. We deal in the language of the base currency and the quote currency. There are only two stat…
In the spot market, your timeline is dictated for you: T+2. In the forward market, you command the timeline. But this command follows a strict, non-negotiable protocol. T…
The spot market is a knife fight in a phone booth. The forward market is where the real strategists operate. Mission: A clean, directional bet on the future. You lock in …
The forward points are not static. They are a living, breathing reflection of the market’s perception of the future. Three, and only three, forces can change them. The La…
The spot rate is irrelevant. It is a ghost. For this decision, it does not exist. Your profit or loss is not measured from today’s spot rate. It is measured from the outr…
The OTC forward market is the wild west. Currency futures are the sterilized coliseum — a standardized, regulated battlefield. - THE LAW OF THE ARENA: Futures are traded …
This is not a trade for amateurs. An Exchange for Physical (EFP) is a sophisticated, two-part operation designed to transform a physical spot position into a futures posi…
On a professional desk, every position, every currency, every cent must be funded every single night. This is the relentless, non-negotiable job of the Forward Desk. At t…
Swap is NOT a directional bet. It is a two-part maneuver designed to move a currency position through time without taking on market risk. The price difference between the…