What is swap?

What is Swap.com? We enable a community of thrifters to find affordable, quality secondhand apparel for the whole family. Being an online thrift store, we make it easier than ever to filter through like-new, pre-owned clothing. Together we keep millions of items out of landfills which is something everyone can feel good about.

What are leg swaps?

Each stream of the cash flows is called a “leg.” Introduced in the late 1980s, swaps are a relatively new type of derivative. Even though relatively new, their simplicity, coupled with their extensive applications, makes them one of the most frequently traded financial contracts.

What is a liability swap?

A liability swap is a financial derivative in which two parties exchange debt-related interest rates, usually a fixed rate for a floating rate. What Is an Amortizing Swap? An amortizing swap is an interest rate swap where the notional principal amount is reduced at the underlying fixed and floating rates.

What is a cash flow swap?

Each cash flow comprises one leg of the swap. One cash flow is generally fixed, while the other is variable and based on a benchmark interest rate, floating currency exchange rate or index price. The most common kind of swap is an interest rate swap.