FX swap: Difference between revisions

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Foreign exchange swap contract.
An abbreviation for [[Foreign exchange swap]] contract.


A short-dated composite agreement to:
1. Exchange currencies at a fixed 'near leg' date (usually spot) and price, AND
2. To re-exchange the same related currencies and amounts at a later fixed 'far leg' date and price.
The composite pricing of the FX swap is favourable for the price-taker, compared with the pricing of the two related outright contracts (for example for spot exchange and forward re-exchange of the same currency pair).


== See also ==
== See also ==
* [[Cross-currency interest rate swap]]
* [[Far leg]]
* [[Far leg]]
* [[Foreign exchange swap]]
* [[Interest rate swap]]
* [[Near leg]]
* [[Near leg]]
* [[Spot transaction]]
* [[Spot transaction]]
Line 17: Line 11:
* [[Swap rate]]
* [[Swap rate]]


[[Category:Cash_Management]]
[[Category:Manage_risks]]
[[Category:FX_Risk]]
[[Category:Cash_management]]

Latest revision as of 12:30, 5 June 2016

An abbreviation for Foreign exchange swap contract.


See also

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