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Why investment use both swap and forward contract while international trade us only forward contract

Why investment use both swap and forward contract while international trade us only forward contract

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Answer #1

Forward Contract:

A forward contract is a contract between two parties to buy or sell of certain assets or products with specific price in future date.

Example:eggs,Rice.

Swap:

A swap is a derivative contract between two parties the exchange of cash or liabilities with in certain rate of interest.

According to The International Foreign Exchange Master Agreement (IFEMA) agreement was published in 1997.we need to follow forward contract for international trade.

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