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
quanto swap
Call Swaption
International Swaps and Derivatives Association (ISDA)
See All Related Terms »

deposit slip
Group of Eight (G8)
bank rate
floor broker