13 Answers
<p id="isPasted">A swap in forex refers to the interest that you either earn or pay for a trade that you keep open overnight. There are two types of swaps: Swap long (used for keeping long positions open overnight) and Swap short (used for keeping short positions open overnight). They are expressed in pips per lot and vary depending on the financial instrument you’re trading.</p><p>FX swaps consist of two types of transactions: a spot trade and a forward trade, both of which are executed simultaneously for the same quantity and offset each other. When two companies have currencies that need to …</p>
18 Views
<p>It is a derivative in which two parties exchange cash flows of one party's financial instrument with the other party's financial instrument.</p>
16 Views
<p>Swap is a derivative arrangement in which two parties swap assets or liabilities from two separate financial instruments. Most swaps include cash flows on the grounds of a notional principal sum, such as a loan or bond, although the transaction may be almost anything. Normally, the principal doesn't change hands. Every cash flow consists of one swap leg. A cash flow is usually fixed, while the other is variable and is dependent on the benchmark interest rate, the floating exchange rate or the index price.</p>
15 Views
<p>A swap is an agreement whereby two parties (called counterparties) agree to exchange periodic payments. The dollar amount of the payments exchanged is based on some predetermined dollar principal, which is called the no- tional principal amount or simply notional amount. The dollar amount each counterparty pays to the other is the agreed-upon periodic rate times the notional amount. The only dollars that are exchanged between the parties are the agreed-upon payments, not the notional amount.</p>
14 Views
<p>A forex swap refers to the interest you earn or pay for a trade that you keep open during the night. There are two types of swaps: Long swap (used to hold long positions open during the night) and Short swap (used to hold short positions open overnight). </p>
12 Views
Please select pages to share
shared
