Forex swap
Categories: Currency | Economics and finance stubs | Derivatives | Foreign exchange market | Interest rates
A Forex swap is an over the counter short term interest rate derivative instrument.
It is the most heavily traded product on the foreign exchange market. If combined with a spot transaction, a Forex swap becomes equivalent to an outright forward foreign exchange transaction.
It should not be confused with a currency swap, which is a much rarer, long term transaction, governed by a slightly different set of rules.
In emerging money markets, Forex swaps are usually the first derivative instrument to be traded, ahead of Forward rate agreements.
fr:Change à terme