Premium and discount

Updated 2026-09-20

Definition

The two halves of a reference range: above 50% price is "expensive" (premium), below it's "cheap" (discount).

Why it matters

As a filter: buys preferably in discount, sells in premium. In strong trends price can stay in one zone for a long time: use it as an entry penalty, not an absolute ban.

Practical example

Range 1.0800-1.1000, equilibrium 1.0900: at 1.0870 price is in discount.

Learn more

Course lesson: Premium, discount and equilibrium: the reference range and the OTE

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Educational content, not financial advice. Trading involves risk.