Currency made simple
Free & Interactive FX Forward Pricing Simulator
Understand the core mechanics of how FX forward rates are calculated.
An FX forward isn’t a prediction of future market movements; it’s a mathematical calculation based on the interest rate differential between two currencies.
Watch as the theoretical forward price and the forward points are instantly calculated. Adjust any variable to see how it impacts the final result.
What You’ll Learn:
How to quickly get a sense of the theoretical “fair value” for a forward contract.
What happens when the spot rate changes but interest rates don’t?
How the “cost of the hedge” is really just the interest rate differential at work.