Discount

From Reuters Financial Glossary

Generally used to describe when something is selling below its normal price. An asset or fund is described as being at discount when its value is below its market price. In the money markets it is the action of buying financial paper at less than par value. In the foreign exchange markets it is a margin by which the forward rate falls below spot. In the futures market it is referred to as backwardation. Opposite of premium.

See also: Backwardation, Premium