A long position in a receiver swaption. This position gives the holder the right and opportunity to receiver the floating rate and pay the fixed rate if interest rates move up before the option’s expiration date (in which case the option will be exercised in order to enter into the swap). However, if interest rates followed an opposite route, the holder would not exercise the option, which expires worthless.

The long receiver swaption is financially equivalent to the short payer swaption.