Forward = Spot +Swap points

Example ILS/USD

Spot rate = 4.1653/4.1753

Swap points 1 M = 84/105

Forward rate 1M =4.1737/4.1858

Roll over a Forward

Getting the same spot rate for the close of the previous forward and for the opening of the new one and adding the swap points for 1 month

Example

The company will sell the $ at the spot

Bid price=4.1653

The company will open a new forward to April 19

The forward rate= The spot of the sell + swap points

4.1758 =Fwd=4.1653+0.0105

On January 1st. A company bought a forward contract on the USD/ILS to March 19.

On March 19 the company decided to roll over the forward to April 19.

Cross rate - ExampleSpot ILS/USD 4.1653/753

Spot USD/EUR 0.8946/51

Spot ILS/EUR 3.726/37

Swap points 1 M ILS/USD = 84/105Swap points 1 M USD/EUR = -0.14/1.57Swap points 1 M ILS/EUR = 72.52/89.59

Forward rate 1 M ILS/USD = 4.1737/858Forward rate 1 M USD/EUR =0.8946/52Forward rate 1 M ILS/EUR = 3.733/45

Cross rate

Buy Euro sell ILS = Sell ILS Buy USD, Sell USD Buy Euro 0.8952* 4.1858= 3.747

A company wants to buy a forward on the Euro/ILS

3.745 , Buy a Euro forward /ILS

0.8952 , Buy a Euro forward /USD

4.1858 , Buy a USD forward /ILS