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DFOL Swaps Guide

CSI DFOL chapter guide for swaps, with section lessons, options workflow cues, and review priorities.

Swaps is a DFOL exam topic weighted at 7%. Use this chapter landing page to frame the derivative, strategy, account, or market-structure issue first, then move into the section lessons for the specific payoff, permission, margin, clearing, exchange, tax, or adjustment cues.

What this topic is really testing

  • introduction to swaps
  • interest rate swaps
  • currency swaps
  • credit swaps
  • other types of swaps

Section lessons

LessonMain review cue
Introduction to SwapsDefine a swap and explain how the swap market differs from exchange-traded derivatives markets
Interest Rate SwapsDescribe the structure of a plain-vanilla interest rate swap
Currency SwapsDescribe the structure of a currency swap and the exchange of principal and interest cash flows
Credit SwapsDefine a credit derivative and explain the role it plays in transferring credit risk
Other Types of SwapsDescribe the basic structure of an equity swap

Better first instincts

If the case feels most like…Better first move
payoff or strategy selectionidentify the option position and the intended risk/reward profile
account or margin workflowconfirm approval, documentation, margin, and supervision before strategy use
exchange, clearing, or order handlingassign the correct listed-options infrastructure role
contract adjustment or non-equity optioncheck the terms and settlement mechanics before using ordinary equity-option shortcuts

Common traps

  • treating all derivatives as if they have the same payoff and workflow
  • ignoring account approval and margin after identifying the right strategy
  • confusing hedging, speculation, income, and volatility intent
  • missing when market structure, clearing, tax, or contract adjustment is the actual test

In this section

Revised on Friday, May 29, 2026