Derivatives · glossary
Two streams of payments on the same notional and dates, netted to one payment each time. It is two-way: either side may owe next quarter, which is why the swap, unlike the cap, needs collateral. Chapter 1 · Chapter 2
Explained in Chapter 1, What a Derivative Is, of Derivatives.
A swap repeats the forward's promise on many dates over years. Each party owes a stream of payments on the same notional, and on each date the two are netted into one payment. Atlas will trade the classic kind: it pays a fixed rate and receives the floating one.Read Chapter 1, What a Derivative Is →
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