Hi
I am unable to understand the difference between Actual Forward Price (AFP) and Fair forward price (FFP)??
Can anyone clearly explain the difference between the two?
Also how do we gain/lose on the same?
Regards
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Futures/forward price
Replies (3)
Dear Rohan,
Actual forward price refers to the price which actually exist on a given future date which we comes to know only at that date whereas fair forward price is that price which we determines today on tbe basis of current price & market conditions affecting such price which may or may not be equals to the actual forward price..
The difference brtween the two can be termed as the gain or loss..
Hope it will clear your doubt upto some extent...!!
yes vikram..the doubts have been cleared..thank u for ur time 
Regards
Ur MOST WELCUM BROTHER...!!! 
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