# Swap, foreign rate transaction

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- Post ID: 591662
- Modified: 2023-07-25T21:12:34+00:00
- Language: en

## Definition

The combination of a spot transaction in foreign exchange with a forward transaction in foreign exchange. The market participant thus combines the spot sale of foreign exchange with a simultaneous forward repurchase; or else he combines a spot purchase of foreign exchange with a simultaneous forward sale. - See back-to-back loan, foreign exchange market, foreign exchange forward, Herstatt risk, hedging, nondeliverable forwards, option, success rates, swap, currency option. - Cf. Monthly Report of the Deutsche Bundesbank, July 2005, pp. 29 ff. (also formulas and overviews there). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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