A zero-cost cross-currency swap which is subject to three ranges as to the movement of its underlying exchange rate. The long pays lower coupons than market (interest rate below par) if the underlying exchange rate remains within a prespecified corridor and higher coupons than the market (interest rate above par) if the exchange rate breaks outside that corridor. Initially, the swap starts in the money then it moneyness develops over time in response to changes in the underlying rate relative to the preset corridor. Therefore, there is a substantial deal of risk associated with a cross currency swap (as the final exchange rate risk is open to all possibilities).

This swap is also known as a bonus swap.