Swap (finance) - Wikipedia In finance, a swap is an agreement between two counterparties to exchange financial instruments, cashflows, or payments for a certain time The instruments can be almost anything but most swaps involve cash based on a notional principal amount [1][2]
Swap - Definition, Types, Applications, Example A swap is a derivative contract between two parties that involves the exchange of pre-agreed cash flows of two financial instruments The cash flows are usually determined using the notional principal amount (a predetermined nominal value)
Swap - definition of swap by The Free Dictionary To exchange (one thing) for another n 1 An exchange of one thing for another 2 A contract in which two parties agree to exchange periodic interest payments, especially when one payment is at a fixed rate and the other varies according to the performance of a reference rate, such as the prime rate
Swaps | Definition, Types, Risks Associated, and Participants A swap is a financial derivative contract that involves the exchange of cash flows between two parties, based on a specified notional principal amount Swaps allow parties to manage risks, such as interest rate , currency, and credit risks , or to speculate on market movements