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Swap rate 2.
The difference between the forward exchange rate and the spot rate at a given date, generally expressed as a number of basis points quoted at one one-hundredth of one percent (0.01% or 0.0001) of the face amount of the currency unit.
When the forward exchange rate exceeds the spot rate, the term contango is used; when the spot rate exceeds the forward exchange rate, the term backwardation is used.
Translations
Synonyms and variations
- Forward exchange margin
- Swap points