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Nearby Terms

swap

definitions

  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

 • quanto swap  • dealing desk  • swap dealer  • swap rate  • tomorrow next trade  • Put Swaption  • Quality option  • rollover
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