- the AUD/HKD spot rate one year from now.
- the AUD/HKD forward rate one year from now.
Whats the difference between these two statement?
The spot rate means the exchange rate for immediate delivery; a forward rate (not _ the _ forward rate; there are infinitely many of them) means the exchange rate for delivery in the future: one year later, two years later, six months later, whatever.
So why both the statements are different?
Today’s 4/23/18.
One year from today is 4/23/19.
On 4/23/19 the spot rate would be for delivery on 4/23/19 (well, technically, 4/26/19, but you get the idea). On 4/23/19, the one-year forward rate would be for delivery on 4/23/20.