Search results
Results From The WOW.Com Content Network
In finance, a foreign exchange swap, forex swap, or FX swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates (normally spot to forward) [1] and may use foreign exchange derivatives. An FX swap allows sums of a certain currency to be used to fund charges designated in another ...
A cross-currency swap's (XCS's) effective description is a derivative contract, agreed between two counterparties, which specifies the nature of an exchange of payments benchmarked against two interest rate indexes denominated in two different currencies.
An accreting swap is used by banks which have agreed to lend increasing sums over time to its customers so that they may fund projects. A forward swap is an agreement created through the synthesis of two swaps differing in duration for the purpose of fulfilling the specific time-frame needs of an investor. Also referred to as a forward start ...
For example, a one-month foreign exchange forward settles one month after the spot date—i.e., if today is 1 February, the spot date is 3 February and the one-month date is 3 March, assuming these dates are all business days. For a trade with two dates, such as a foreign exchange swap, the first date is usually taken as the spot date.
Currency swap; Foreign exchange option; Historical agreements; ... 1.5465 is the price of the Euro expressed in US dollars, meaning 1 euro = 1.5465 dollars. The ...
Central bank liquidity swap is a type of currency swap used by a country's central bank to provide liquidity of its currency to another country's central bank. [1] [2] In a liquidity swap, the lending central bank uses its currency to buy the currency of another borrowing central bank at the market exchange rate, and agrees to sell the borrower's currency back at a rate that reflects the ...
For example, a one-month foreign exchange forward settles one month after the spot date. I.e., if today is 1 February, the spot date is 3 February and the one-month date is 3 March (assuming these dates are all business days). For a trade with two dates, such as a foreign exchange swap, the first date is usually taken as the spot date.
Foreign exchange option trading: The contract can agree the option holder to exchange it at a defined price as his right instead of an obligation. Forward exchange futures transaction trading: Future contract’s buyers or sellers submit margin at the beginning of trading, as a kind of buffering mechanism.