Abstract
As mentioned in the introduction, trading can be defined as an agreement between two parties in which one of the two consciously accepts a financial risk in return for the receipt of a specified payment or at least the expectation of such a payment at same future time from the counterparty.
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Notes
- 1.
Swap rates should not be mixed up with swap points, which is the difference between the FX forward rate and the FX spot rate.
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Deutsch, HP., Beinker, M.W. (2019). Financial Instruments: A System of Derivatives and Underlyings. In: Derivatives and Internal Models. Finance and Capital Markets Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-22899-6_3
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DOI: https://doi.org/10.1007/978-3-030-22899-6_3
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Publisher Name: Palgrave Macmillan, Cham
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