Swap

1. A capital market swap is a longer-term derivative instrument. It is an agreement to exchange a series of cashflows at pre-determined future dates, usually settled for difference. Examples of capital market swaps include interest rate swaps, basis swaps, and cross currency interest rate swaps.

2. A foreign exchange swap is a shorter term instrument. It is an agreement to exchange currencies at a fixed future date (known as the near leg date) and then to re-exchange the same currencies at a later fixed future date (the far leg date).

See also

• Accreting swap
• Amortising swap
• At the money
• Basis swap
• Capital market swap
• Counterparty
• Cross-currency interest rate swap
• Differential swap
• Equity swap
• Fixed rate payer
• Fixing instrument
• Floating rate payer
• Foreign exchange swap
• Interest rate swap
• Long-dated swap
• Notional principal
• Swaption
• Total return swap
• Warehousing
• Zero-coupon swap