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Swap Contracts and Cash Flow Exchanges

Learn how swaps work as OTC contracts that exchange cash flow patterns, rates, or currencies over time.

In this section

  • How Interest Rate Swaps Work
    Understand interest rate swaps as agreements to exchange fixed and floating payment streams on a notional amount.
  • How Currency Swaps Work
    Learn how currency swaps exchange principal and interest in different currencies to manage foreign exchange exposure.
Revised on Thursday, April 23, 2026
Forward Contracts
Forward and Swap Risks