Foreign Exchange Swap


A currency swap is the combination of a spot transaction with a forward contract. The trade is thus composed of an initial transaction, the exchange of two currencies at the spot exchange rate with two days value (standard), and an end transaction, the redemption at the forward rate. When trading, in addition to the spot price, the forward discount or premium is also fixed. This difference represents the difference in interest rates for the respective periods of the two traded currencies.

Currency swaps are used for hedging a future obligation for payment or receipt of funds in a currency. Please contact us for further information.

KADEGE brokers transactions in the major currencies USD, GBP, CHF and JPY.