Browse Financial Instruments

Currency and Cross-Border Swaps

Currency swap, cross-currency swap, foreign-exchange swap, non-deliverable swap, quanto swap, and swap-points terms.

Currency and Cross-Border Swaps is the financial-instruments landing page for swap mechanics, ISDA documentation, notional principal, interest-rate swaps, currency swaps, credit derivatives, total-return swaps, variance swaps, volatility swaps, and inflation swaps. It keeps related terms in one branch so readers can move from a broad instrument question to the article that owns the contract evidence.

Use this page when a swap or rate-linked derivative changes cash-flow exchange, counterparty exposure, hedging, or valuation. Use the parent Swaps, Rates, and Credit Derivatives page when you need the broader instrument map. For an individual decision, confirm the contract, term sheet, prospectus, confirmation, exchange specification, or disclosure record before relying on the term.

Use the table below to move from this landing page into the term page that best matches the instrument evidence.

Key Terms in This Branch

TermUse it for
Cross-Currency SwapCross-Currency Swap helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs.
Currency SwapCurrency Swap helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs.
Foreign Exchange SwapForeign Exchange Swap helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs.
Non-Deliverable Swap (NDS)Non-Deliverable Swap (NDS) helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs.
Quanto SwapQuanto Swap helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs.
Swap PointsSwap Points helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs.

Example in Use

An interest-rate swap can convert fixed-rate debt exposure into floating-rate exposure without refinancing the underlying loan.

What to Check

  • Counterparties, notional amount, fixed leg, floating leg, reference rate, payment dates, and maturity.
  • Collateral terms, ISDA documentation, clearing status, margin, termination events, and reporting records.
  • Credit, currency, equity, rate, inflation, variance, or total-return exposure being transferred.
  • Effect on hedge effectiveness, funding cost, duration, basis risk, counterparty credit risk, and mark-to-market value.

Common Mistakes

  • Confusing notional principal with the amount actually exchanged.
  • Ignoring collateral, clearing, termination rights, and counterparty risk.
  • Comparing swaps without matching reference rates, reset dates, payment frequency, and day-count conventions.

Currency Swaps content is educational and does not provide personalized investment, tax, legal, accounting, valuation, derivatives, or securities advice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Cross-Currency Swap

A cross-currency swap exchanges interest payments, and often principal, in two currencies to manage funding or currency exposure.

Currency Swap

A currency swap exchanges cash flows in different currencies, helping borrowers or investors manage exchange-rate and funding exposure.

Foreign Exchange Swap

A foreign exchange swap combines a spot currency exchange with a forward reversal, often for liquidity, funding, or FX hedging.

Non-Deliverable Swap (NDS)

A non-deliverable swap settles net cash differences without exchanging the restricted or reference currency itself.

Quanto Swap

A quanto swap links payoff exposure to one market while settling in another currency, separating asset exposure from currency settlement.

Swap Points

Swap points are the forward points added to or subtracted from a spot FX rate to quote a forward or swap price.

Revised on Sunday, June 21, 2026