An exchange of streams of payments over time according to specified terms. The most common type is an interest rate swap, in which one party agrees to pay a fixed interest rate in return for receiving a adjustable rate from another party.

Use swap in a sentence

I wanted to swap my car for another one and it took me a few days to get a ride down to the dealership.

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The swap occurred and it was mutually beneficial as our business partner would like to receive the payments next year.

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My boss was concerned about our business being exposed to interest rate swings in our investments, so he arranged a swap with a major investment bank to help smooth our path out.

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