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Which one matters more: net demand for swaps vs. gross demand for swaps?

Which one matters more: net demand for swaps vs. gross demand for swaps?

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Answer #1

Net demand for swaps will be more important than the gross demand for the swaps because net demand for swaps should be indicating the actual exposure and Organisation will have to take in order to eliminate the risk associated with fluctuation in the various elements in macro environment.

Gross demand for swaps can be misguiding in nature because they are also including various factors which are misappropriating the actual exposure in the swaps so it is better to focus upon the net demand for swaps.

Net demand for swaps will be mattering more.

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