An interest rate swap or cross-currency swap which is not matched by an offsetting/ mirror swap or other financial asset or liability. That means, it has no relationship to any asset or liability of either counterparty. The mismatch can relate to an element such as the date structure and/ or the principal amount. With this swap, there are no underlying cash flows to be made or received by the the end user. Examples would involve swaps entered into for the purposes of risk management, market-making, or warehousing.

In most cases, a swap market maker assumes the role of a counterparty to a swap without hedging the other end of the transaction.

The naked swap is alternatively known as a unmatched swap.