Forex swap

In finance, a forex swap (or FX swap) is an over-the-counter short term interest rate derivative instrument. In up-and-coming money markets, forex swaps are usually the first derivative instrument to be traded, ahead of forward rate agreements.

Structure
A forex swap consists of two legs:
A spot foreign exchange transaction, and
A forward foreign exchange transaction. These two legs are executing simultaneously for the same quantity, and therefore offset each other.