A forward discount means the market expects the domestic currency to depreciate against another currency, but that is not to say that will happen. Although the forward expectation's theory of exchange rates states this is the case, the theory does not always hold.
Investment dictionary. Academic. 2012.
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Forward discount — A currency trades at a forward discount when its forward price is lower than its spot price. The New York Times Financial Glossary … Financial and business terms
forward discount — A currency trade at a forward discount when its forward price is lower than its spot price. Bloomberg Financial Dictionary … Financial and business terms
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Discount — Referring to the selling price of a bond, a price below its par value. Related: premium. The New York Times Financial Glossary * * * ▪ I. discount dis‧count 1 [ˈdɪskaʊnt] noun [countable] 1. COMMERCE a reduction in the cost of goods or services… … Financial and business terms
Discount Spread — Currency forward points that are subtracted from the spot rate, to obtain a forward rate for a currency. In the currency markets, forward spreads or points are two way quotes, that is, they have a bid price and an offer price. In a discount… … Investment dictionary
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