A contract between foreign exchange banks to sell currencies to each other with a concomitant Agreements to reverse the exchange of currencies along with the interest payment due from the bidding party at a fixed date in the future for the same price, and its term is usually 1 year and over.
Interest Rate Swap
A contract between two counterparties to exchange interest payment obligations on a notional principal sum over an agreed period of time.
A contract between foreign exchange banks giving the right to buy or sell a specified amount of one foreign currency in exchange for another at a fixed price within some predetermined time period.
Average Price Strike Option
A type of currency option contract to set the "strike" or "exercise" price of options based on the average exchange rate between the contract date and maturity date.