FX swap: Difference between revisions

Latest revision as of 12:30, 5 June 2016

An abbreviation for Foreign exchange swap contract.

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-Foreign exchange swap contract.
+An abbreviation for [[Foreign exchange swap]] contract.
-A short-dated composite agreement:
-#To exchange currencies at a fixed 'near leg' date (usually spot) and price, AND
-#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).
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 * [[Cross-currency interest rate swap]]
 * [[Far leg]]
-* [[Foreign exchange swap]]
+* [[Interest rate swap]]
 * [[Near leg]]
 * [[Spot transaction]]