Foreign Exchange Swap - Structure

Structure

A foreign exchange swap consists of two legs:

  • a spot foreign exchange transaction, and
  • a forward foreign exchange transaction.

These two legs are executed simultaneously for the same quantity, and therefore offset each other.

It is also common to trade forward-forward, where both transactions are for (different) forward dates.

Read more about this topic:  Foreign Exchange Swap

Famous quotes containing the word structure:

    For the structure that we raise,
    Time is with materials filled;
    Our to-days and yesterdays
    Are the blocks with which we build.
    Henry Wadsworth Longfellow (1809–1882)

    ... the structure of a page of good prose is, analyzed logically, not something frozen but the vibrating of a bridge, which changes with every step one takes on it.
    Robert Musil (1880–1942)

    The syntactic component of a grammar must specify, for each sentence, a deep structure that determines its semantic interpretation and a surface structure that determines its phonetic interpretation.
    Noam Chomsky (b. 1928)