Talk:Foreign exchange swap

Swap points
There needs to be some explanation of swap points, and how one can trade interest rate differentials. Finnancier 12:09, 23 August 2007 (UTC)
 * Done. Finnancier 10:54, 26 August 2007 (UTC)

I do agree swap points need to be explained as well as the relationship to the forward legs of a swap and the interest rate differential which creates the swap points.

I do not agree with the current definition as it now is.

An FX Swap / Currency Swap should be defined as:

Two Foreign Exchange transactions executed simultaneously Trade 1 spot FX trade and Trade 2 a forward FX trade.

Example:

BUY USD ag JPY value spot and SELL USD ag JPY forward.

This has nothing to do with fixed rate or floating rates or any type of interest rate derivatives. There seems to be some confusion over "FX Swaps" "Currency Swaps" and Interest rate derivatives such as and overnight index swaps (OIS). Jake2pt.lu 18:11, 31 August 2007 (UTC)


 * Agreed. I have removed the paragraph that reads: "The fixed rate in this transaction is the forward rate that is locked in by the forward contract. The floating rate will be the overnight rate that is realized on a daily basis by the spot transaction.  Typically, the floating side of these trades are indexed to the Overnight Index Swap (OIS) rate.  This rate is an average of the rates that are paid based on a survey." Are there other changes that need to be made? Finnancier 12:23, 12 September 2007 (UTC)

Description of the formulas declares r1 and r2 to be simple interest rates but then contradicts itself by using compounding in the formulas itself. There should be no compounding for FX swaps with maturity of 1 year or less (which is the vast majority of FX swaps) and instead of compounding the rates should be scaled multiplicatively by the appropriate tenor, i.e. typically days/360. —Preceding unsigned comment added by 212.90.204.130 (talk) 10:44, 27 February 2009 (UTC)

differences with currency swaps please
Can we expand on that please? Thanks. 169.71.50.11 (talk) 13:01, 26 March 2008 (UTC)

Assessment comment
Substituted at 15:22, 29 April 2016 (UTC)

External links modified
Hello fellow Wikipedians,

I have just modified one external link on Foreign exchange swap. Please take a moment to review my edit. If you have any questions, or need the bot to ignore the links, or the page altogether, please visit this simple FaQ for additional information. I made the following changes:
 * Added archive https://web.archive.org/web/20090111055433/http://glossary.reuters.com/index.php?title=FX_Swap to http://glossary.reuters.com/index.php?title=FX_Swap

When you have finished reviewing my changes, you may follow the instructions on the template below to fix any issues with the URLs.

Cheers.— InternetArchiveBot  (Report bug) 18:44, 3 October 2017 (UTC)

India Education Program course assignment
This article was the subject of an educational assignment supported by Wikipedia Ambassadors through the India Education Program.

The above message was substituted from by PrimeBOT (talk) on 20:01, 1 February 2023 (UTC)