Question

explain the trading mechanism of swap contracts
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Answer 1

Answer:

A swap is a derivative contract through which two parties exchange the cash flows or liabilities from two different financial instruments. ... One cash flow is generally fixed, while the other is variable and based on a benchmark interest rate, floating currency exchange rate, or index price.

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Answer 2

Explanation:

A swap is a derivative contract through which to parties exchange the cash flows or liabilities from two different financial instruments .... One cash flow is generally fixed, where the other is variable and based on a benchmark interest rate , floating currency exchange rate, or index price