Related Terms
Exchange of one type of asset, cash flow, investment, liability, or payment for another. Common types of swap include: (1) Currency swap: simultaneous buying and selling of a currency to convert debt principal from the lender's currency to the debtor's currency. (2) Debt swap: exchange of a loan (usually to a third world country) between banks. (3) Debt to equity swap: exchange of a foreign debt (usually to a Third World country) for a stake in the debtor country's national enterprises (such as power or water utilities). (4) Debt to debt swap: exchange of an existing liability into a new loan, usually with an extended payback period.
(5) Interest rate swap: exchange of periodic interest payments between two parties (called counter parties) as means of exchanging future cash flows.

Use 'swap' in a Sentence

You can go to a swap meet if you have lots of a product you want to get rid of and see what offers you may get.
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I wanted to swap my lawnmower for an even better one that would make my lawn look amazing and perfect.
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The board of directors agreed to a fair exchange of assets, but most of them had doubts that the imminent currency swap would go smoothly and were prepared for the worst .
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