Exchange for Swap – Fincyclopedia
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Exchange for Swap


A technique whereby banks can avoid taking physical delivery of commodities. It is similar to an exchange of futures for physical (EFP) transaction, in the sense that a commodity dealer replaces the bank in its futures position and exchanges the commodity return for a given funding rate.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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