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Currency Trading Information – Currency Swap

A currency swap is a form of swap. It is most easily understood by comparison with an interest rate swap. Currency swap is the responsibility of the broker. An interest rate swap is a contract to exchange cash flow streams that might be associated with some fixed income obligations, —say swapping the cash flows of a fixed rate loan for those of a floating rate loan. A currency swap is exactly the same thing except, with an interest rate swap, the cash flow streams are in the same currency. With a currency swap, they are in different currencies. Click here to learn more about currency swap.

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In the video presented. It was clearly discussed what a currency swap is all about. The video provided brief and concise example to clearly illustrate how currency swap works. It aims to give ideas to all those traders that are new in the Forex market to make them a better and knowledgeable trader.

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