FX Swaps
A swap involves two legs, the first usually being a spot transaction and the second a forward transaction. An FX swap involves purchase or sale of one currency in exchange for another, with its immediate resale or repurchase at a later date. As with other foreign exchange transactions, all contract details (exchange rates and trade dates for both legs, amounts and payment instructions) are agreed on the trade date.
How do you benefit:
hedging against adverse exchange rate fluctuations in foreign currency borrowings,
a broad range of settlement dates can be negotiated, from 3 to 365 days,
contracts can be concluded up to an authorized settlement limit or against a security deposit starting from 3% of the contract value.
