FX swap

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Revision as of 08:50, 22 August 2014 by imported>Doug Williamson (Added 1 line space before see also)
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Foreign exchange swap contract.

A short-dated composite agreement to:

1. Exchange currencies at a fixed 'near leg' date (usually spot) and price, AND

2. To re-exchange the same related currencies and amounts at a later fixed 'far leg' date and price.

The composite pricing of the FX swap is favourable for the price-taker, compared with the pricing of the two related outright contracts (for example for spot exchange and forward re-exchange of the same currency pair).


See also