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Commodity swap

Index Commodity swap

A commodity swap is a type of swap agreement whereby a floating (or market or spot) price based on an underlying commodity is traded for a fixed price over a specified period. [1]

7 relations: Commodity, Euribor, Financial institution, Interest rate swap, Libor, Oil, Swap (finance).

Commodity

In economics, a commodity is an economic good or service that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.

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Euribor

The Euro Interbank Offered Rate (Euribor) is a daily reference rate, published by the European Money Markets Institute, based on the averaged interest rates at which Eurozone banks offer to lend unsecured funds to other banks in the euro wholesale money market (or interbank market).

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Financial institution

Financial institutions, otherwise known as banking institutions, are corporations which provide services as intermediaries of financial markets.

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Interest rate swap

In finance, an interest rate swap (IRS) is an interest rate derivative (IRD).

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Libor

The London Inter-bank Offered Rate is the average of interest rates estimated by each of the leading banks in London that it would be charged were it to borrow from other banks.

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Oil

An oil is any nonpolar chemical substance that is a viscous liquid at ambient temperatures and is both hydrophobic (does not mix with water, literally "water fearing") and lipophilic (mixes with other oils, literally "fat loving").

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Swap (finance)

A swap is a derivative contract where two parties exchange financial instruments.

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Redirects here:

Commodity Swap.

References

[1] https://en.wikipedia.org/wiki/Commodity_swap

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