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International markets and foreign exchange operations - Savluk M.І.

12.1.5. Victoria please swap

Take away the swap.

  • for the promotion (prolongation) of open currency position on Maybutn. Prolonguwati (abo “swopuvati”, all kinds of words to swap out) means currency position means saving the position (mark and sign) on the Maybut string;
  • for cheruvannya with its assets that goiter’s job, for more profit;
  • for currency exchange rate adjustment;
  • for hedge operation forward.

For another reason, swap banks can extend their position to any position that is conveniently trivial terminely fall in view of the forecast of the exchange rate. It’s possible to stink to prolong for another day of one-day swaps (for one day), so I’ve been more likely to follow terms of a swap (for example, for two, month, month, for river).

Stowed land swap is much cheaper for market takers, lower stowed forward contracts at different prolonged foreign currency positions.

Butt. The company LLC wants to prolong for three months forward contract for the purchase of 1 million Nimetsky marks, deposits earlier. At the Danish moment, the spot rate is USD / DEM = 2,0120 / 25, swap points per term three months more “–72 / –67”. The Bank may have two ways:

  • close the position on the minds of the spot and steal a new forward gratification,
  • Settle for the “buy / sell DEM” swap.

In the case of a forward rate, the exchange rate will be 2.0048 (bid side of the spot rate 2.0120 - bid side of the forward quote 0.0072). If you want to swap a swap, then LLC Zdіsniit swap type "sell / buy DEM" for courses 2.0125 on spot and 2.0053 on forwards (2.0125 - 0.0072). When laying forward forward co-operative companies, the company carries Vitrati for the amount of USD 1908.46, and when swap is paid - USD 1784.09, which is cheaper by USD 124.37.

Keruvannya assets and goiters should be based on victorious overtaking, as well as bearers of pozichniki can be gained on different currency markets. So, with a different scheme, please, swap a leather posichnik, you can win a singing sum of currency much cheaper, lower yakbi win taking a loan for the foreign exchange market.

Hedge currency exchange rates for another currency swap:

  • exchange rate fixing for Maybutniy period;
  • organizing zstrochnyh groshih streams.

Take away the swap on the front є with the bank operations and may have a bagato with the operations forward. In practice, swap operations are much more frequent, less simple forward operations. Transfer from a swap in front of a forward sweep:

  • in case of a foreign currency swap, currency rizik is significantly reduced, frauds are higher for the participants - please exchange the forward rate, and the position of the skin participant to get the swap price is zero;
  • victorious swap yes you can take care of the hedge of pre-contracted opera tions and economic rizikіv.

Shchodo rukhu financial flows in favor of a swap can be seen as a short-term short and foreign currency positions.