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 above 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.
Discount rate may refer to: An interest rate (the term "discount" does not refer to the common meaning of the word, but to the meaning in computations of present value)

o    The central bank's discount window interest rate
o    The annual effective discount rate, an alternative measure of interest rates to the standard Annual Percentage Rate
•    in investment financing, discounted cash flow
•    theoretical or observed rates at which people discount future payoffs

o    in environmental economics, and more generally in assessing the general welfare impacts of government policies, social discount rate (the basic mathematics is the same as discounted cash flow, but the cash value of human lives etc. can only be crudely estimated)
•    Fees charged for accepting payments other than in banknotes and coins:
o    bankers' acceptance rates for accepting bankers' acceptances. If commission is included as well, this is known as the all-in rate
o    Discount Rate under Merchant Account, the fees charged to merchants for accepting credit cards