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Swap contract
A contract negotiated over the counter by which both counterparties agree to exchange financial flows for a given period, according to predetermined terms and conditions.
(1) The financial flows are generally determined based on an agreed notional and floating rate index and on a payment schedule over the swap tenor. The swap corresponds to a series of forwards.
(2) Swaps include interest rate swaps, cross-currency swaps, foreign exchange swaps, commodity swaps, equity swaps, index swaps and credit swaps.
Translations
Synonyms and variations
- Swap 1.