Work out a forward contract's value when marked to market
The idea
A forward is valued by imagining an offsetting forward for the same settlement date and discounting the locked-in difference. A contract that sells the base currency at F0 is closed by buying at today's forward offer for the remaining term (spot offer plus offer-side points). One that buys is closed by selling at the bid. Value per unit of base is F0 − Ft for the seller and Ft − F0 for the buyer, times the notional. The amount is in the price currency and paid at settlement, so divide by 1 + i price × remaining days ÷ 360. The usual errors are the wrong side of the quote, the original rather than remaining maturity, and not discounting.
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