forex swap

Definition

A type of foreign exchange swap consisting of two parts, completed at the same time. One part is a foreign exchange spot trade, and the other is a foreign exchange forward transaction. Forex swaps are most often used by investors for either hedging or speculation purposes.

Use forex swap in a sentence

The forex swap was conducted by our broker who suggested the trade be made to improve our position in the currency.

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The forex swap was cool because it meant that the two parts would be completed at the same time and everything would be fine.

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The adviser in our foreign speculations division was on the phone making forex swaps all day attempting to hit his quota for the month.

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currency swap interest rate derivative