Introduction to Swap and Forward Trading

An obligation to acquire or sell an underlying asset at a fixed price and maturity is provided by forward agreements. When the contract reaches maturity, the seller must sell the buyer the underlying asset for the amount indicated in the contract. Forward agreements subject the parties to a duty that cannot be avoided. An agreement between two parties to trade their purchases for a predetermined amount of time is known as a swap. Assets of a particular quantity and quality, including cash, foreign currency, gold, financial instruments, receivables, products, etc., may be the subject of the purchases constituting the foundation of the swap transaction. Interest rate swap payments can include both principal and interest payments as well as interest-only payments.

The purpose of this course is to provide investors with a practical explanation of forward and foreign currency interest swap transactions as well as interest derivative strategies using examples and theoretical pricing. Participants will get an in-depth understanding of these transactions and linked marketplaces, including examples from basic ideas to contemporary business practices on both the domestic and international levels. After completion of this course, participants will be better equipped to handle domestic and international forward trading pricing, financial hedging transactions involving currency and interest swaps, and interest derivatives. They will also be able to develop futures strategies that are more carefully aligned with their risk and return expectations. will get the chance to invest.