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
fixed dates
International Swaps and Derivatives Association (ISDA)
Energy derivatives
unbiased expectations hypothesis
See All Related Terms »

terminal market
paid up shares
sale and lease back
escape clause
mezzanine finance