Talk:Forex swap

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    [edit] 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)

    [edit] differences with currency swaps please

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