Losing the Points

Losing the Points

Somewhat informal; in foreign exchange, the act of selling a futures contract on a currency at a low exchange rate and buying a currency on the spot market at a higher exchange rate. When one must deliver the underlying currency on the futures contract, losing the points guarantees a loss because one sells the currency at a rate lower than the one at which one bought it. Obviously, losing the points is inadvisable. See also: Gaining the points.