Monday, February 24, 2014

How significant is an 'Interest Rate & Currency Swap' for a forex investor?

More important aspect for an investor or a company that is dealing in financial instruments is the significance of the interest and currency swaps affecting cash flow and assest management in the overall portfolio. This maybe considered to be in an institutional level but can be applied to main-street investors. A better understanding can only assist other investor-traders the relevance of including 'Swaps into the equation' whenever dealing with foreign currency trading.

More often swaps may have been over-looked at times or even neglected, since most FX trades nowadays specially from retail or main-street investors have only been taking speculative trades. Instead of enhancing investment funds with dynamic strategies that effectively improve cash flow and asset protection in the portfolio. Trader-investors loose their grip and are not properly guided that these applications do exist.

Interest Rate & Currency Swaps

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