FX swap

Foreign exchange swap contract.

A short-dated composite agreement:

1. To 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

• Cross-currency interest rate swap
• Far leg
• Foreign exchange swap
• Near leg
• Spot transaction
• Swap points
• Swap rate