A cross-currency swap that provides no protection in terms of the final exchange notional amount. It allows the swap buyer to choose three ranges (a lower, middle, and upper range). Therefore, it has the effect of doubling the upside participation but at the expense of increasing the downside risk. Hence, it can serve particularly those investors who expect or bet on rising exchange rates. Typically, it performs well in markets characterized by forward backwardation.

The lower range defines a worst case interest rate payment, while the middle range- roughly close to the current spot- is associated with an interest rate payment high enough to enter into the swap. The upper range comes with a very low or zero interest rate. These ranges become applicable at each interest cash flow date.