Foreign Exchange: Swaps

Foreign Exchange: Swaps

Intuition Publishing Pty Ltd
Updated Sep 24, 2020

The swapping of a financial characteristic of an interest rate, currency, or asset for a different characteristic for a specific period of time is known as a swap in financial markets. The use of currency as a commodity for a swap is explained and we We learn how a bid or offer price for a swap is arrived at. The other common uses for foreign exchange are examined.