Gbp=thb Fx Forward Rates

[stament]

Hi,

I've been trying to work out what the forward rates 1month, 6 month and 12month are but can't. I managed to find this page on the internet

http://www.krungsri.com/en/foreign-exchange-rates02.aspx

However, it's the change not the actual GBP to THB. Could someone pls explain it to me. If I look at GBP 3 month bank sells, there is a figure of 13.75. Does this mean I add 13.75 THB onto the current GBP Rate of circa 50?

I did go into Krungsi bank to ask them but they didn't know and gave me a telephone number but alas it's now Songran and the office will be closed.

Thanks in advance

[RubbaJohnny]

Is a magin call so for example UK POUD IS 49 BAHT

£ MONTH RATE +0.5 add that on if a negative subtract

google forex for many leads most from scame wishing to teach you to be a millionaire in a week

Its highly speculative and does not forecast exacly .Forex is swayed by economics politics climate etc

Trading Places withe Eddie Murphy is light hearted view of what is really a big Casino .If you really understand spread bets double carpet and up and down the stairs derivvtive trading is kst laying off risk as every bookie from Epsom to Belmonyt Park or Pert hCasino knows

The extra its the premium for people buying contracts now for future delivery so in additon to any brokers fee theirs a degree of hedge elended with sentiment.A kind of mortgage on future price.

With political uncertainty both ends where coup here stability and hung parliament UK means sub 45 possibly heading parity with 100 yen A$ Swiss Franc and US$ around 36 baht is long view

A boody conflict /civil war scenario esp if killing tourists and tourism and a strong majority for Brown or Cameron wll lead to 55+

I see this as the upper imit due to hidden peg toYuan and Chines influence,others see 60 as ceiling ,there is no correct level its aflux determined continuosly by random events.A gulf Wat petrol hike Tsunami can all sway fundamentals and more critcally confidence.

It wont be just the condo owners wholl burn their fingers.

I am not a financial advisr but Australia $ or Hong Kong drposits linkeeed to Kwai is how I have voted with my feet and closed accounts with Kaiskorn and SCB except for a token amount.

New revoltionary governments have ahabit of re-issiung currencies and the old stuff becomes toilet paper.

Vamos aver I may be wrong but a coup and stability is inChaina and Ameicas interests so a quiet coup will allow a softer transtion from feudalism.

As for Uk a hung parliament will see AAA go and even a weak govt unable unwilling to crush debt by harsh measures ,no dole cchild benefis sack cops teachers pension age to 70.Such measures plus less holiday s benefits entitlements and less consumption is adifficult sell to a fat mollycoodled generaton who never ent to bed hungrsy or were allowed to take only a weeks wages out of the country in pre Thatcher gloom

Good luck and take pro advise.Forex dealing is high risj esp if you leverage.

For the regular guy the cost and commsions are the issue out witting the market is waht spot traders used to to do usually

"gambling" with other folks cash like Leeson

Edited April 12, 2010 by RubbaJohnny

[Naam]

Is a magin call so for example UK POUD IS 49 BAHT

£ MONTH RATE +0.5 add that on if a negative subtract

google forex for many leads most from scame wishing to teach you to be a millionaire in a week

Its highly speculative and does not forecast exacly .Forex is swayed by economics politics climate etc

Trading Places withe Eddie Murphy is light hearted view of what is really a big Casino .If you really understand spread bets double carpet and up and down the stairs derivvtive trading is kst laying off risk as every bookie from Epsom to Belmonyt Park or Pert hCasino knows

The extra its the premium for people buying contracts now for future delivery so in additon to any brokers fee theirs a degree of hedge elended with sentiment.A kind of mortgage on future price.

the OP has asked a simple question on straight forward rates. you answered with incoherent as well as irrelevant bla-bla (margin call, negative subtract, premiums, futures, casino, derivative trading).

straight forwards are fixed contracts and you know where you stand the moment the transaction is done. the cost of a straight forward is the difference of the bid/ask of both currencies plus the difference in interest rates between both currencies for a certain period plus some rather small fee the bank charges. period! i am doing forwards all the time.

having said so, i can't make heads or tails what Bank of Ayudhya has published.

[JAS21]

If this is any help..from my son who should know

Forward rates are the rates to buy/sell in 1mth, 3 or 6mths times

Current spot with the pound is 49.3-49.46 according to that website

The fwd is -2 – 8 for 1mth

So you would add this to both sides

i.e. 49.28-49.54 or could mean 49.1 – 49.54 ( u need to clarify )

Beyond me though!

[Stjohnm]

If you are currency trading you should know as much if not more than anyone working at a bank, before you start its not a game for amateurs. If not do what I do when my funds are getting low in Thailand and its time for a Swift from my UK accounts if its a crap rate (below 50) I wire the lot to my Sterling account out here, if its good (55+) I send it to my THB account anything in between I send it to my Sterling account and then convert what I need as and when I need it. If you're out her on Holiday take travellers cheques and do the same.

[Naam]

If you are currency trading you should know as much if not more than anyone working at a bank, before you start its not a game for amateurs. If not do what I do when my funds are getting low in Thailand and its time for a Swift from my UK accounts if its a crap rate (below 50) I wire the lot to my Sterling account out here, if its good (55+) I send it to my THB account anything in between I send it to my Sterling account and then convert what I need as and when I need it. If you're out her on Holiday take travellers cheques and do the same.

a forward is NOT currency trading per se. it is commonly used as an instrument to hedge the value of a currency which one holds actually or as receivable against another currency which is needed at a certain date.

[alfieconn]

Bank of Ayudhya has the 3mths STG/THB rate at 1.25 14

Take the spot rates at 48 48.50

So therefore if you are buying THB and selling Stg 3 months forward the rate would be 48.0125

If selling THB and buying STG the rate would be 48.6400.

That looks about right but to be fair its along time since i done forwards.

There is actually a calculation using 3mth STG rates and 3mth THB rates that would give you the forward rate and i will do some calculations and thinking and let you what it is.

Edited April 12, 2010 by alfieconn

[stament]

Hello again,

It seems my original posting might have been a bit ambiguous so let me apologise for that.

I already understand what a future is, I just don't understand how to work it out based on Bank of Ahudyha's tables. Could someone pls just tell me what the 1month, 3month and 6month fwd rate is now for GBP-THB.

Also, if anybody knows how to work it out from BoA's table I'd welcome a simple explanation.

Thanks again

[alfieconn]

Hello again,

It seems my original posting might have been a bit ambiguous so let me apologise for that.

I already understand what a future is, I just don't understand how to work it out based on Bank of Ahudyha's tables. Could someone pls just tell me what the 1month, 3month and 6month fwd rate is now for GBP-THB.

Also, if anybody knows how to work it out from BoA's table I'd welcome a simple explanation.

Thanks again

These are forward rates not future rates.

I would have thought that the above is self explanatory .

The prices that the BofA give for the 1,3 and 6mth fwd rates are the adjustments that you have to make to the spot rate and being that they are at a discount you would add them to the spot rate as in my examples.

Edited April 13, 2010 by alfieconn

[stament]

Hello again,

It seems my original posting might have been a bit ambiguous so let me apologise for that.

I already understand what a future is, I just don't understand how to work it out based on Bank of Ahudyha's tables. Could someone pls just tell me what the 1month, 3month and 6month fwd rate is now for GBP-THB.

Also, if anybody knows how to work it out from BoA's table I'd welcome a simple explanation.

Thanks again

These are forward rates not future rates.

I would have thought that the above is self explanatory .

The prices that the BofA give for the 1,3 and 6mth fwd rates are the adjustments that you have to make to the spot rate and being that they are at a discount you would add them to the spot rate as in my examples.

My mistake I meant Forward Rate not Future.

[Chaimai]

a forward is NOT currency trading per se. it is commonly used as an instrument to hedge the value of a currency which one holds actually or as receivable against another currency which is needed at a certain date.

Agree - a Forward is usually taken as protection for known inflows or outflows of a particular currency. The difference between the current 'spot rate' and the 3, 6 12 month Forward is known as the 'premium' or 'discount' depending on the market view of where the rate is going.

I import a little rice to England and have to pay in US$.

I wish I had taken out a Forward contract last year when GBP/USD was 2.00 ! The current rate is just over 1.50.

Taking out a Forward would have 'protected' me against this movement (assuming the premium was under 0.50 which I am certain it would have been).

[alfieconn]

a forward is NOT currency trading per se. it is commonly used as an instrument to hedge the value of a currency which one holds actually or as receivable against another currency which is needed at a certain date.

Agree - a Forward is usually taken as protection for known inflows or outflows of a particular currency. The difference between the current 'spot rate' and the 3, 6 12 month Forward is known as the 'premium' or 'discount' depending on the market view of where the rate is going.

I import a little rice to England and have to pay in US$.

I wish I had taken out a Forward contract last year when GBP/USD was 2.00 ! The current rate is just over 1.50.

Taking out a Forward would have 'protected' me against this movement (assuming the premium was under 0.50 which I am certain it would have been).

Incorrect, on 2 accounts, a forward rate is a known as a forward rate which can be at a discount or a premium and its not dependent on the market of view where the rate is going, a forward price is obtained by doing a calculation (ie arbitraging) between the 2 currencies interest rates for the period that you are pricing.

Edited April 14, 2010 by alfieconn

[Chaimai]

a forward is NOT currency trading per se. it is commonly used as an instrument to hedge the value of a currency which one holds actually or as receivable against another currency which is needed at a certain date.

Agree - a Forward is usually taken as protection for known inflows or outflows of a particular currency. The difference between the current 'spot rate' and the 3, 6 12 month Forward is known as the 'premium' or 'discount' depending on the market view of where the rate is going.

I import a little rice to England and have to pay in US$.

I wish I had taken out a Forward contract last year when GBP/USD was 2.00 ! The current rate is just over 1.50.

Taking out a Forward would have 'protected' me against this movement (assuming the premium was under 0.50 which I am certain it would have been).

Incorrect, on 2 accounts, a forward rate is a known as a forward rate which can be at a discount or a premium and its not dependent on the market of view where the rate is going, a forward price is obtained by doing a calculation between the 2 currencies interest rates for the period that you are pricing.

I would have said that was wrong on ONE account.

I accept that the oremium/discount is based on interest rate differentials between currencies,.

Are those interest rates (and expectations) not 'set' by the market ?

[Naam]

a forward is NOT currency trading per se. it is commonly used as an instrument to hedge the value of a currency which one holds actually or as receivable against another currency which is needed at a certain date.

Agree - a Forward is usually taken as protection for known inflows or outflows of a particular currency. The difference between the current 'spot rate' and the 3, 6 12 month Forward is known as the 'premium' or 'discount' depending on the market view of where the rate is going.

I import a little rice to England and have to pay in US$.

I wish I had taken out a Forward contract last year when GBP/USD was 2.00 ! The current rate is just over 1.50.

Taking out a Forward would have 'protected' me against this movement (assuming the premium was under 0.50 which I am certain it would have been).

Incorrect, on 2 accounts, a forward rate is a known as a forward rate which can be at a discount or a premium and its not dependent on the market of view where the rate is going, a forward price is obtained by doing a calculation (ie arbitraging) between the 2 currencies interest rates for the period that you are pricing.

Alfie is correct Chaimai!

[alfieconn]

Are those interest rates (and expectations) not 'set' by the market ?

You said

depending on the market view of where the rate is going.

You implied that this was the forward rate and not interest rates but anyway who really cares.