Performance scenarios of a deal based on Swaps
PERFORMANCE SCENARIOS of a deal based on Swaps: FX Swap on EURUSD.
|Margin Requirement ($):||MR = P x TS x M||200,000€|
|LONG EURUSD||Price change||Close Price in 6 months||P&L (in $)|
To note that the example above outlines an FX swap instead of a cross currency swap. That said, no principals exchange hands and no interest payments are paid or received during the term of the swap.
For a SHORT EURUSD FX SWAP position, the outcomes are exactly the opposite of the ones depicted above.
2021-02-01 • Updated