Encyclopedia of Investment Terminology

Return to Stock Market and Investment Encyclopedia Index

Forex Swap

A forex swap involves a schedule where the same amount of one currency is bought and then sold for a different type of currency. In this transaction the person who holds the currency can end up with a long or short position. In a long position the owner earn a profit while the owner loses money in a short position. This type of swap is a commonly used forex trading option and is a short term trade unlike a currency swap.

Return to Index

Copyright 2008 StockDic.com
All Rights Reserved.