P4 Chap18 – Discount/Premium on Forward Exchange Contracts

Hi Guys.
Just trying to figure out premium and discount on fowrad contacts.

EG: Spot $/£ 1.5326-1.5385
3m forward 0.62-0.51 c pm

What does the premium MEAN? Does it mean that the current spot is higher than the forward rate, as that would explain deducting the premium from spot.

Does this also mean that wherever you see a premium, you will deduct from spot (regardless of buying or selling the currency), and wherever you see a discount, you will ADD it to spot (again regardless of buying or selling the currency)?

Thanks all.