Search Dictionary

Definition of 'Swap'

A swap is the exchange of one security for another instead of the exchange of a security for cash. Typically the exchange will be for:
  • Maturity of a bond.
  • Quality of security, e.g. AAA bond for AA bond.
  • Currency
  • Interest rates (e.g. fixed for floating)

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.