Check Management

About China Bank

FX and derivatives products such as spot, forward, fx swap, cross currency swap, and interest rate swap.

  • Spot: price quoted for immediate settlement of a currency; buy/sell of a currency with maximum tenor of not more than two days.
  • Forward: a hedging tool that allows the client to lock in the price today for a currency that is to be bought or sold for settlement at a future date to eliminate FX risk. 
  • FX Swap: a contract that simultaneously agrees to buy or sell an amount of currency at an agreed rate and to resell or repurchase the same amount of currency for a later value to or from the same counterparty also at an agreed rate. Mostly used for funding requirements.
  • Cross Currency Swap: a bilateral contract to exchange a series of future interest payments (and sometimes principals) denominated in two different currencies at an agreed interest rate and exchange rate. Mostly used for funding requirements.
  • Interest Rate Swap: an agreement between two parties to exchange one stream of interest payments for another over a set period of time in order to reduce or increase exposure to the fluctuations in interest rates. It usually involves the exchange of fixed interest rate for a floating interest rate or vice versa.
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