Filter by Categories
Accounting
Banking

Derivatives




Face Value of a Swap


The face value of a swap is its notional principal amount; it is the nominal value that is used as a basis for calculating swap payments. A respective period’s rate (resetting rates for resetting periods) is multiplied by the notional amount to determine the amount of payment that a counterparty has to make to the other.

The face value of a swap never changes hands in a transaction, as it is only used for payment calculation.



ABC
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*