FX Swap

Post author By admin
Post date December 2, 2020

The FX Swap or currency swap that involves the two currency buys one to the other. It is an agreement between two parties to exchange a given amount of one currency for an equal amount of another currency based on the current spot rate.This creates a hedge for both parties against potential fluctuations in currency exchange rates.

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Risk Warning: CFD’s and Foreign Exchange (FX) traded on margin carry a high degree of risk. As such they may not be suitable for all investors. Investors should ensure they fully understand the risks associated with leveraged CFD and FX trading before deciding to trade because you can lose some or all invested capital. Investors may choose to seek independent advice and should not risk more than they are prepared to lose.

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Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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