Hello everyone.
The swap is a contract that has been gaining in recent years, thanks to better (or , at least, more ... ) knowledge of financial markets for professionals and because used as an annex or subordinate to a variety of major contracts, mainly to the mortgage loan.
In English, Swap means "exchange" and this contract is just that, a agreement whereby two parties agree to exchange in the future a certain class of goods, services or cash referenced to any variable rate measurable, such as a type interest. Additionally, there is talk of a swap contract "derivative" because their value is based on another asset, which is indexed and called "core" .
A swap is valued according to a technique called "arbitration" which is simply replicate the expected flows of cash receipts or payments to determine who will benefit in the future compromise. If, for example, signed a swap that would guarantee a hundred tons of wheat purchased within 90 days at a given price, if after those three months the price of corn is higher because we will gain the ability to enjoy buy it at a fixed price advance and lower, otherwise, we buy on a mandatory basis a higher price and in fact we have lost money.
Here we see a major utilities Swap is but ensure that we can exchange goods or services at a reasonable price at a given time, a quality that is widely used, for example, all companies that are intensive in the use of raw materials and whose return is linked to be able to provide those resources at the right price and it is here where the second and most famous swap utility ... the speculation, as when speculating in stocks or bonds, enter into a swap if our view is that the goods we receive in the future will bring for us a greater value than the goods that we deliver in the future ... ie the price that we close at the moment.
There is a wide variety of swaps or swaps: the call money used in the interbank market currency swaps on commodities as we have seen, equity swaps or contracts swaps whose underlying assets are shares listed or not, and many more, but surely the most famous and reviled by many is the swap interest rate, which has hurt many mortgage holders by ignorance market and some unscrupulous banks.
The interest rate swap has been sold, usually linked to a mortgage loan as an anti-rising insurance euribor mortgaged as guarantee to pay a maximum interest rate for a given time but is above the Euribor ; on paper seems interesting but a bad thing when bodies will insist that there is no reason to sign the loan in writing but in a private contract annexed, in the same bank branch ... In fact the bank "speculated" that you would lower rates in the future as it was, and, as mentioned swap has a maximum but a minimum, there have been many who have spent mortgaged years without benefit of a scenario of low interest rates .
Remember that our knowledge of the market is lower than the entities involved in banking, never try to negotiate with them on equal footing because obviously you are not, and beware of what you recommend the friendly cashier ... as part of your salary is bound to convince you of it. Greetings
www.NLSasesores.com
In English, Swap means "exchange" and this contract is just that, a agreement whereby two parties agree to exchange in the future a certain class of goods, services or cash referenced to any variable rate measurable, such as a type interest. Additionally, there is talk of a swap contract "derivative" because their value is based on another asset, which is indexed and called "core" .
A swap is valued according to a technique called "arbitration" which is simply replicate the expected flows of cash receipts or payments to determine who will benefit in the future compromise. If, for example, signed a swap that would guarantee a hundred tons of wheat purchased within 90 days at a given price, if after those three months the price of corn is higher because we will gain the ability to enjoy buy it at a fixed price advance and lower, otherwise, we buy on a mandatory basis a higher price and in fact we have lost money.
Here we see a major utilities Swap is but ensure that we can exchange goods or services at a reasonable price at a given time, a quality that is widely used, for example, all companies that are intensive in the use of raw materials and whose return is linked to be able to provide those resources at the right price and it is here where the second and most famous swap utility ... the speculation, as when speculating in stocks or bonds, enter into a swap if our view is that the goods we receive in the future will bring for us a greater value than the goods that we deliver in the future ... ie the price that we close at the moment.
There is a wide variety of swaps or swaps: the call money used in the interbank market currency swaps on commodities as we have seen, equity swaps or contracts swaps whose underlying assets are shares listed or not, and many more, but surely the most famous and reviled by many is the swap interest rate, which has hurt many mortgage holders by ignorance market and some unscrupulous banks.
The interest rate swap has been sold, usually linked to a mortgage loan as an anti-rising insurance euribor mortgaged as guarantee to pay a maximum interest rate for a given time but is above the Euribor ; on paper seems interesting but a bad thing when bodies will insist that there is no reason to sign the loan in writing but in a private contract annexed, in the same bank branch ... In fact the bank "speculated" that you would lower rates in the future as it was, and, as mentioned swap has a maximum but a minimum, there have been many who have spent mortgaged years without benefit of a scenario of low interest rates .
Remember that our knowledge of the market is lower than the entities involved in banking, never try to negotiate with them on equal footing because obviously you are not, and beware of what you recommend the friendly cashier ... as part of your salary is bound to convince you of it. Greetings
www.NLSasesores.com
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