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Questions tagged [swaps]

A swap is a derivative contract through which two parties exchange financial instruments.

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What's the difference between a variance swap and a long straddle option trade?

A long straddle is when one is anticipating a swing in stock price, but you’re not sure which direction it will go. And a variance swap is a financial derivative used to hedge or speculate on the ...
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1answer
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Selling Interest Rate Swaps

Suppose two parties have entered into an interest rate swap. Would it be possible for one party to sell their portion of the contract to another party? Or would that party have to enter into an ...
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Hedging against currency risk

Is there a hedging method against currency risk without lowering returns ? Classic hedging methods like forwards, futures options, all have a cost and don’t remove risk “for free”.
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1answer
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Swap hedging a currency hedge

I want to open a short position for USD/JPY that I intend to leave alone for a while in order to currency hedge my investments. Last year, my US stocks appreciated quite a bit and I don't want to ...
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What are libor swap rates?

In the Wall Street Journal there is a list of money rate benchmarks. One of them is LIBOR swaps (USD), whose description is LIBOR swaps are mid-market, semi-anual swap rates and pay the floating 3-...