What is swap?

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What is swap?..

Answer / abhijit k

in swaps two parties exchange there obligations generaly
interest payment obligation, only because they have
different views regarding the market, with a purpose to
save cost. banks are the intermediateries for swaps.
e. g. if A has taken a loan on fixed rate basis but is of
the view that interest rate will fall in the near future
then he can enter into a contract with exactly opposite
view i.e. B has taken loan on flexible interest rate but is
of the view that the interest rate will go up in the near
future.

Is This Answer Correct ?    51 Yes 19 No

What is swap?..

Answer / samson pailo

A swap is a derivative in which two counterparties agree to
exchange one stream of cash flows against another stream.
The swap agreement defines the dates when the cash flows are
to be paid and the way they are calculated. Swaps can be
used to hedge certain risks such as interest rate risk, or
to speculate on changes in the expected direction of
underlying prices.

Is This Answer Correct ?    13 Yes 6 No

What is swap?..

Answer / ashish

hello mr dashing take ur ans from me
Exchange of one type of asset, cash flow, investment,
liability, or payment for another. Common types of swap
include: (1) Currency swap: simultaneous buying and selling
of a currency to convert debt principal from the lender's
currency to the debtor's currency. (2) Debt swap: exchange
of a loan (usually to a third world country) between banks.
(3) Debt to equity swap: exchange of a foreign debt
(usually to a Third World country) for a stake in the
debtor country's national enterprises (such as power or
water utilities). (4) Debt to debt swap: exchange of an
existing liability into a new loan, usually with an
extended payback period. (5) Interest rate swap: exchange
of periodic interest payments between two parties (called
counter parties) as means of exchanging future cash flows


ashish.miba@gmail.com

Is This Answer Correct ?    11 Yes 8 No

What is swap?..

Answer / guest

it refer to exchange of an thing for another thing.

Is This Answer Correct ?    28 Yes 26 No

What is swap?..

Answer / raghs

Depending on the type of swap whether its interest swap,
credit default, or the total return swap the definition
varies, the basis idea being acquiring some thing which the
organization has no privilege of, for eg: banks generally
are not allowed to invest in fancy instrument like variable
rated or commonly floating rated securities so they
approach a middle men to sell their fixed in return of a
floating rated securities.

Is This Answer Correct ?    10 Yes 9 No

What is swap?..

Answer / jyoti chaudhary

A Swap is a derivative in which two counterparties exchange
certain benefits of one party's financial instruments for
those of the other party's financial instrument. The
benefits in question depend upon on the type of financial
instruments involved.

Is This Answer Correct ?    2 Yes 2 No

What is swap?..

Answer / smruti ranjan sahoo

The exchange of a sequence of cash flow that derive from two difference financial instruments.

Is This Answer Correct ?    0 Yes 0 No

What is swap?..

Answer / ansir ali doger

swap is an derivative contract in which two parties agree
to seel or buy some underlying asset{cash flow stream] in
future but price is decided today

ansirfuuast@gmail.com

Is This Answer Correct ?    5 Yes 6 No

What is swap?..

Answer / daya

Swap space in Linux is used when the amount of physical
memory (RAM) is full. If the system needs more memory
resources and the physical memory is full, inactive pages in
memory are moved to the swap space. While swap space can
help machines with a small amount of RAM, it should not be
considered a replacement for more RAM. Swap space is located
on hard drives, which have a slower access time than
physical memory.

Is This Answer Correct ?    5 Yes 9 No

What is swap?..

Answer / swagatika

swap is to replace pages of segments of data in memory

Is This Answer Correct ?    1 Yes 5 No

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