what are forward points 
in currency trading forward points are the number of basis points added to or subtracted from the current spot rate of a currency pair to determine the forward rate for delivery on a specific value date when points are added to the spot rate this is called a forward premium when points are subtracted from the spot rate it is a forward discount the forward rate is based on the difference between the interest rates of the two currencies currency deals always involve two currencies and the time until the maturity of the deal forward points are also known as the forward spread basis points can be either added or taken away from the spot rate if they are added they are forward points if subtracted they are discount points 