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Home > QFINANCE Dictionary > Definition of swap

Definition of


  • 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


    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


    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


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

  • Obstacles to the Further Development of the Longevity Swaps Market for Pension Funds

    Best Practice

    The question we address in this chapter is why longevity swap transactions are currently running at around only £3 billion to £5 billion per year in the context of total liabilities of around £1 trillion.
    By Martin Bird, Tim Gordon


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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