Dictionary of Banking Terms: earning the points
earning the points
in foreign exchange, market condition that exists when the buying price of a currency in the forward market is cheaper than the spot market price. For example, when the spot market rates are U.S. $1 = 1.6500 deutschmarks, and the one-month forward rate is $1 = 1.6450, the difference is .0050. A trader selling at the spot rate and buying at a cheaper one-month forward rate is earning the points. The opposite is losing the points.
