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Home > QFINANCE Dictionary > Definition of swap

Definition of

swap

  • 1. Finance

    trade of payment terms between two firms an arrangement whereby two organizations contractually agree to exchange payments on different terms, for example, in different currencies, or one at a fixed rate and the other at a floating rate.

    Related definitions of "swap"

  • 2. Finance

    exchange an exchange of credits or liabilities

swap - Related Articles
  • Swap Valuation

    Calculations

    In finance, a swap is a derivative in which two parties agree to exchange one stream of cash flow against another. The swap buyer makes a stream of interest payments on a principal sum to the seller, based on the present value of the asset, for a fixed period of time. The seller then receives

  • Understanding and Using Currency Swaps

    Checklists

    This checklist explains what a currency swap is and why it is used. Currency swaps are sometimes called cross-currency swaps.

  • Understanding and Using Inflation Swaps

    Checklists

    This checklist explains what an inflation swap is and why it is used.

  • Understanding and Using Interest Rate Swaps

    Checklists

    This checklist explains what an interest rate swap is and why it is used.

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Definitions of ’swap’ and meaning of ’swap’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’swap’ and other financial terms with our online QFINANCE Financial Dictionary.

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