Network of swaps: main types, features and applications

The peculiarity of financial markets is that the situation they might face is difficult to predict. Currency quotes and rates for different assets may change at any time to the trader's disadvantage. Transactions with swaps allow us to reduce the financial risk to a minimum. When two market participants exchange assets and agree on the implementation of a reverse transaction, fixing the future cost of the operation in advance, they distribute the risks for both parties. The swap helps to increase the amount of assets, hedges risks, and allows to gain access to markets in other jurisdictions and, accordingly, gain profit.