What is Cryptocurrency Swap?

The currency swap:

If you regularly trade the stock market, you already know that the stock market is characterized by frequent fluctuations in the exchange rates on which you speculate. As part of this activity, you have probably already heard of currency swaps. In this article we are going to talk a little more about this concept so that you can better understand how it works.

Definition of currency swap:

The currency swap is also known by its name in English, "currency swap". In reality, it is an exchange of capital between two companies and in two different currencies. It can also be a simple currency exchange between two parties. A currency swap is also subject to conditions that allow the relative value of the assets to be determined, such as the purchase and sale value of each of the currencies or the interest rate of the countries that issue them.

Within the framework of a currency swap, the two parties thus undertake to exchange the principal sum of a loan in a currency and the interest that is applied during a specific period, Token swap platform development in exchange for a sum that corresponds to the applicable interest. in the second currency. We often use currency swaps to exchange fixed-rate debt payments for variable-rate debt payments, that is, debt whose payment may vary depending on the evolution of interest rates. However, these swaps can also be used for fixed rate transactions.

Why is a currency swap interesting?

Companies that carry out currency swaps generally do so with the aim of obtaining a loan at a better rate than the local market offers, in addition to locking in a specific exchange rate in advance for the servicing of a title. credit in a foreign currency.

Currency swaps were created by British financial institutions during the 1970s to evade the controls imposed on currencies at the time. However, it was in 1981 when the swap market was launched as part of a World Bank operation to reduce its exposure to interest rates for a loan in dollars on the US markets in exchange for obligations in Swiss francs and in deutsche marks in possession of IBM .

FX swaps and their particularities:

There is also another type of swap called the “FX swap” and which has some peculiarities. The FX swap does not propose an exchange of interest during the duration of the contract, but rather the sum of the funds exchanged is different at the end of the contract. We often use these FX swaps with the aim of reducing currency risk while currency swaps are also used to offset currency and interest rate risks. In this way, multinational companies or financial institutions use them to finance investments in currencies with variable durations that can reach up to 30 years.

For their part, FX Swaps are used more by exporters or importers, as well as institutional investors, who are looking for coverage. Its average duration varies between one day and one year. For some years, and according to the statistics and research carried out by the BIS (Bank for International Settlements) regarding central banks, it appears that FX swaps are the most frequently traded foreign exchange instruments and represent a large part of transactions made with currencies. Forex swap trading volume, meanwhile, is considerably lower, accounting for just a quarter of the volume of FX swaps.

In a classic currency swap transaction, one party will borrow a sum of currency from the other at the prevailing exchange rate. At the same time, he lends a sum that corresponds to the counterpart in the currency he owns. During the contract, each of the parties will give the other some interest in the currency of the principal sum that it has received. At the end of the contract, the two parties reimburse each other.

For example, imagine a currency swap between a US company and a French company. The French company borrows one billion dollars and lends 500 million euros to the American company with an exchange rate of two dollars per euro. During the term of the contract, the French company will regularly receive an interest payment in euros from the US company and a base price against the swap. She will pay the US company in dollars at the prevailing exchange rate. At the end of the contract, the French company will deliver a capital of one billion dollars to the American company, and will receive from it the 500 million euros delivered.

What is GEEK

Buddha Community

What is Cryptocurrency Swap?
Amara Sophi

Amara Sophi


Kickstart your Reliable Cryptocurrency Exchange Business in 2020!

If you have an idea to start your cryptocurrency exchange website with the most trendy and essential features choose the best cryptocurrency exchange soltuion like Coinjoker.

Coinjoker is the leading Cryptocurrency Exchange Development Company, that pioneer in developing a high-end cryptocurrency exchange/trading website platform with whitelabel Exchange Development solutions. This Whitelabel solution helps to start your own cryptocurrency exchange platform at cost-effective budget. You can also get topmost business modules like crypto wallet development, popular crypto exchange clone scripts, cryptocurrency mlm software development, smart contract development, crypto trading bot, Token development, Dapp Development and more.

Exclusive features of our Bitcoin Exchange Script

  • Customized Admin Panel
  • P2P Exchange
  • Easy & Secure Transaction
  • Multi-Trade Orders
  • Advanced Smart contract
  • Margin Trading & Lending
  • Merchant API Services
  • Two factor authentication
  • Multi-Signature Wallet

Whether If you want to build your exchange platform from scratch or to leverage white label exchange development solutions, we can help and assist you. Our customized crypto development solutions will accomplish your business goals and make a way for your long term success.

Check out here to know more >> https://www.cryptoexchangescript.com/

Or contact us through,

Whatsapp->> +91 9791703519
Telegram->> https://t.me/Coin_Joker
Skype->> live:support_60864
Email->> support@cryptoexchangescript.com

#cryptocurrency exchange script #cryptocurrency exchange software #cryptocurrency trading software #cryptocurrency trading script #cryptocurrency exchange website script #cryptocurrency trading website script

walter geed


Best Cryptocurrency Development Company | Cryptocurrency Software Solutions

Shamlatech is the Best Cryptocurrency Development Company with customized solutions for you.
Best Cryptocurrency Development Company to provide you a highly Customized Cryptocurrency Software development and marketing Solutions.

#cryptocurrency software development company #custom cryptocurrency development #cryptocurrency development company #cryptocurrency development services #develop cryptocurrency

hasho gen

hasho gen


Cryptocurrency Exchange Essentials

It is learnt that a **Cryptocurrency exchange **or DCE short for digital currency exchange is a popular service/platform that enables clients to trade cryptocurrencies for other resources, such as other cryptocurrencies, standard FIAT cash or other digital currencies.

Primarily they allow trading one cryptocurrency for another, the buying and selling of coins, and exchanging FIAT into crypto. There are different crypto exchanges may have different options and features. Generally some are made for traders and others for fast cryptocurrency exchanges.

Do you want to know how do exchanges set their prices?

Mostly there is a common misconception is that exchanges set prices. However, this is not true. There’s no official, global price. The exchange rate of a cryptocurrency generally depends on the actions of sellers and buyers, although other factors can affect the price. Moreover the prices vary depending on the activity of buying and selling on each of these exchanges.

In addition each exchange calculates the price based on its trading volume, as well as the supply and demand of its users. This means that the higher the exchange, the more market-relevant prices you get. Actually there is no stable or fair price for Bitcoin or any other coin - the market always sets it.

Do you know how crypto exchanges make money?

Amazingly the exchanges make profit from different revenue streams, most popular four are: commissions, listing fees, market making, and fund collection for IEOs, STOs and ICOs.

Popular Commission - trading fees

The most familiar way to monetize exchanges cryptocurrency and traditional exchanges is to charge commissions in the market. Actually this commission pays for the trade facilitation service between the buyer and the seller. The commissions can be as low as 0,1% per transaction and due to low trading cost bring in high trading volume.

Quality Listing Fees

Due to heavy competition, the newly created exchanges struggle with low volume during their early stages and therefore need another source of revenue. Also many exchanges opt for token and coin listing services to drive revenues. By organizing Initial Exchange Offerings (IEOs), Security Token Offerings (STOs), and Initial Coin Offerings (ICOs), exchanges might professionally collect a percentage of funds raised from these offerings.

Which is the best Cryptocurrency exchange software development company?

Without any doubt the **Hashogen Technologies **is a popular motivated cryptocurrency exchange software development company with a team of skilful resources. Their key motto of us is to offer technology-driven services at an affordable cost without compromising the quality. One can also witness quality Bitcoin Exchange Script, Cryptocurrency Exchange script and Cryptocurrency exchange software from Hashogen Technologies.

Demo links: http://exchange.consummo.com/

Click here Get Knew About Hashogen >> https://www.hashogen.com
Contact Us Whatsapp: +91 9551963333
Telegram: https://t.me/hashogen
Skype: skype:live:.cid.8410342345cd3d09?chat
Email: hello@hashogen.com

#cryptocurrency exchange essentials #best cryptocurrency exchange software development company #best cryptocurrency exchange #cryptocurrency exchange #cryptocurrency exchange software

aviana farren

aviana farren


How To Overcome The Challenges Involved In Cryptocurrency Exchange Development?

Creating their own cryptocurrency exchange has become a common phenomenon among entrepreneurs in the cryptosphere in recent years. Cryptocurrency exchanges are the main driving force behind the crypto market volume growth over the past decade, and they have provided lucrative opportunities for many entrepreneurs around the world. Many entrepreneurs have become millionaires by launching their own cryptocurrency exchange, which is why the demand and competition around crypto exchanges have drastically increased in the last few years.

Even though starting your own cryptocurrency exchange is lucrative, there are also many challenges involved in the cryptocurrency exchange development process. Especially in this intensely competitive scenario, every aspect of your cryptocurrency exchange development plays a crucial role in determining the success and visibility of your exchange over your competitors. To ensure long-term sustainability and success for your exchange, it is essential that you identify the pain points involved with crypto exchange development, and learn how to convert the odds into your favor. So, let’s go ahead and take a look at some of the significant challenges involved in developing an exchange from scratch, and solutions that will help to overcome them.

Read More @ https://bit.ly/3vpK64S

#creating their own cryptocurrency exchange #cryptocurrency exchanges #cryptocurrency exchange development #cryptocurrency exchange development process #cryptocurrency exchange software development #crypto exchange software solutions

Aria Barnes

Aria Barnes


Cryptocurrency Wallet Application Development – What Does the Future Hold?

Blockchain technology stands to alter the manner in which cash can be dealt with. This technology productively sidesteps the need to have a judge and permits individuals to move and gather their cash without the contribution of banks and other monetary elements. This is, all by itself progressive since it gives a road to individuals who wouldn’t, in any case, approach the worldwide economy. 

This type of technology has a lot of technology since phone use keeps on soaring, just as the utilization of portable applications, making admittance to cash simpler than any time in recent memory. The development of a cryptocurrency wallet application promptly gives a basic vehicle to admittance to reserves that sidestep monetary referees. This could be a response to reliance on monetary foundations for the procurement and move of cash.

Read more here: Cryptocurrency Wallet Application Development

#cryptocurrency wallet development #cryptocurrency app development companyin india #cryptocurrency app development company #cryptocurrency development company #cryptocurrency development #hire blockchain developers