Foreign Exchange: Short Dated Outrights and Swap Rates
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Foreign Exchange: Short Dated Outrights and Swap Rates

Intuition Publishing Pty Ltd
Updated Sep 24, 2020

A short-dated trade is an outright or swap trade that has to be delivered today, which is two days before spot, or tomorrow, which is one day before spot. Here we look at the practicalities of trading for settlement before spot and how such trades are priced inclusive of any interest rate adjustments.

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