Forex Swap

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. In finance, a forex swap (or FX swap) is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates (normally spot to forward).Foreign exchange derivative. A forex swap consists of two legs: a spot foreign exchange transaction, and, a forward foreign exchange transaction. These two legs are executed simultaneously for the same quantity, and therefore offset each other. It is also common to trade forward-forward, where both transactions are for (different) forward dates.