Home » Investment Glossary » A Swap transaction

A Swap transaction

 

200282932-001A swap is a type of  financial exchange transaction,in which one party’s financial instrument with other party’s financial instruments.In swap,we can trade different types of financial instruments such as bonds,securities etc.It is done through a formal agreement between two parties,where payments are paid in series of installments.

 

The value and payment of swap cash flows is totally dependent on the moving up and down of different types of variables such as foreign exchange rate,commodity price and floating interest rates.

 

 

Facebooktwittergoogle_plusredditpinterestlinkedinmailby feather

About Emaad Qureshi