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Swap or SWAP may refer to:
A swap is a derivative in which two counterparties exchange cash flows of one party's financial instrument for those of the other party's financial instrument. The benefits in question depend on the type of financial instruments involved. For example, in the case of a swap involving two bonds , the benefits in question can be the periodic interest ( coupon ) payments associated with such bonds. Specifically, two counterparties agree to exchange one stream of cash flows against another stream. These streams
The cash flows are calculated over a notional principal amount . Contrary to a future , a forward or an option , the notional amount is usually not exchanged between counterparties. Consequently, swaps can be in cash or collateral .