Swap, foreign rate transaction

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/