An option that confers to its holder the right to enter into a specific Type of swap Transaction at or by a pre-determined expiration date as either a payer or receiver of the fixed interest rate. Some types of swaption incorporate a forex component that can be used by a Hedger to protect a Series of cash flows in a currency other than their Domestic Currency.

Browse by Subjects

Popular Forex Terms

dual listing
mid week
continuous improvement
risk asset ratio
authorized forex dealer
contract for difference (CFD)
net transaction exposure