Far leg: Difference between revisions
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imported>Doug Williamson m (Added 1 line space before see also) |
imported>Doug Williamson (Add second definition, about repos.) |
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1. ''FX swaps'' | |||
In an FX swap contract, the later re-exchange of the two currencies in the contract. | In an FX swap contract, the later re-exchange of the two currencies in the contract. | ||
This follows the initial exchange of the same currencies and related amounts in the opposite direction, in the 'near leg'. | |||
2. ''Repurchase agreements'' | |||
In a securities repurchase agreement ('repo'), the second exchange (re-exchange) of securities, previously exchanged in the 'opening leg' or 'near leg'. | |||
== See also == | == See also == | ||
* [[Closing leg]] | |||
* [[FX swap]] | * [[FX swap]] | ||
* [[Near leg]] | * [[Near leg]] | ||
* [[Opening leg]] | |||
* [[Repurchase agreement]] | |||
* [[Swap points]] | * [[Swap points]] | ||
[[Category:Manage_risks]] | |||
[[Category:Cash_management]] | [[Category:Cash_management]] | ||
Revision as of 15:49, 25 June 2017
1. FX swaps
In an FX swap contract, the later re-exchange of the two currencies in the contract.
This follows the initial exchange of the same currencies and related amounts in the opposite direction, in the 'near leg'.
2. Repurchase agreements
In a securities repurchase agreement ('repo'), the second exchange (re-exchange) of securities, previously exchanged in the 'opening leg' or 'near leg'.
