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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 ...
In finance, a currency swap (more typically termed a cross-currency swap, XCS) is an interest rate derivative (IRD). In particular it is a linear IRD, and one of the most liquid benchmark products spanning multiple currencies simultaneously. It has pricing associations with interest rate swaps (IRSs), foreign exchange (FX) rates, and FX swaps ...
A quanto swap is a cash-settled, cross-currency interest rate swap in which one counterparty pays a foreign interest rate to the other, but the notional amount is in domestic currency. The second party may be paying a fixed or floating rate.
Without a central exchange, currency exchange rates are made, or set, by market makers. [1] Banks constantly quote a bid and an ask price based on anticipated currency movements taking place [ clarification needed ] and thereby make the market.
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 conversion fees, also called foreign currency exchange fees, come in two forms. Both involve charges for converting one currency to another during an international transaction. Credit ...
Exchange-rate flexibility; Dollarization; Fixed exchange rate; Floating exchange rate; Linked exchange rate; Managed float regime; Dual exchange rate; List of countries by foreign-exchange reserves; Markets; Foreign exchange market; Futures exchange; Retail foreign exchange trading; Assets; Currency; Currency future; Currency forward; Non ...
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.
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