What is swap? | News in Planet

What is swap?

Derivative contracts, in which the underlying assets are exchanged, are grouped under the swap group.

In a swap transaction, two currencies can be exchanged, as well as interest rates in the same currency. In addition, there are swap contracts in which both currency types and interest rates change hands.

Apart from these, there are also swap transactions in which securities or commodities change hands with the interest of any foreign currency. In addition, there are swaps that allow any risk of the underlying asset to change hands.

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