What is Swap Point?What is spread?How to determine Forward Rate based on Swap Points? Would the calculation differ if Spread of Sap Points positive or …
Foreign exchange swap, forex swap, or FX swap =
s a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates.
difference between the forward rate and the spot rate. These points are computed using an economic concept called Interest Rate Parity. Swap Points = Forward Price – Spot Price