Swap

1) Financial contracts in which the buyer (seller) of currency or stock in the moment of buying (selling) assumes an obligation to sell (buy) currency or stock in some time in the future. Such kinds of contracts are suitable for banks in terms of accounting liquidity support. Each operation is followed by interest payment, and each of the parties endeavors to satisfy his own commercial interest, by settling interest level for currency, stock or other objects occupation.

There are several kinds of swap operations:

-Swap aimed to prolong the validity of security is the security selling and simultaneous buying of same kind of security with a longer period of validity;

- exchange swap - foreign exchange buying with immediate payment in national currency on the condition of consequent buy-back;

- gold swap-operation - gold buying on the condition of cash delivery with simultaneous buy-back settlement in a certain time;

-interest rate swap - one party (moneylender) is obliged to pay the other party percents, received from borrowers at the LIBOR rate in return for buy-back under the rate settled in the contract. It's a gaming contract, in which wins the party better predicted rates dynamics;

- debt swap - moneylenders interchange with not only percents, but with a whole amount of debt of their clients according to the contract's conditions.

Abovementioned swap types operations can be united in one combined operation

2) simultaneous security swap (selling of one kind of security and simultaneous buying of similar security on grounds of tax payments)

3) interest rate difference for two currencies in the same term.