【学习笔记】International Finance 国际金融论研究 学习笔记-24

Part I

Basics of International Finance --24

Ch5 --8

TheMarket for Foreign Exchange

Long and Short Forward Positions

1.     If you have agreedto sell anything (spot or forward), you are “short.”

2.     If you have agreed to buy anything (forward or spot), youare “long.”

3.     If you have agreed to sell an FX forward, you are short,and if you have agreed to buy an FX forward, you are long.

Swaps

1.     A swap is anagreement to provide a counterparty with something he or she wants in exchangefor something that you want.

        –Often on a recurring basis (e.g., every six months for five years).

2.     Swap transactions account for approximately 56 percent ofinterbank FX trading, whereas outright trades are 11 percent.