In exchange markets, this is a simultaneous sale of a currency on the spot market together with a purchase of the same amount on the Forward Market. By combining these two transactions into a single one,transactions costs may be reduced. An arrangement between central banks whereby they each agree to lend their currency to the other.
Browse by Subjects
Quality option
convertible bond
interest rate risk
swap dealer
See All Related Terms »

total return swap (TRS)
Brokerage Fee
limited partner
net yield
consolidated cash flow statement