Nearby Terms



  1. 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.

  2. An arrangement between central banks whereby they each agree to lend their currency to the other.

Related Terms

 • Bookout  • forward exchange rate  • credit default swap (CDS)  • fixed dates  • rollover  • swaption  • swap dealer  • Exposure
 more related terms