Commodity Swap

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Dictionary Says

Definition of 'Commodity Swap'

A swap in which exchanged cash flows are dependent on the price of an underlying commodity. A commodity swap is usually used to hedge against the price of a commodity.
Investopedia Says

Investopedia explains 'Commodity Swap'

The vast majority of commodity swaps involve oil. So, for example, a company that uses a lot of oil might use a commodity swap to secure a maximum price for oil. In return, the company receives payments based on the market price (usually an oil price index).

On the other side, if a producer of oil wishes to fix its income, it would agree to pay the market price to a financial institution in return for receiving fixed payments for the commodity.
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'Commodity Swap'

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  • How Companies Use Derivatives To Hedge Risk

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  • Derivatives 101

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    ... into the swap. Currency Swaps One party exchanges loan payments and principal in
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  • Will Curbs On Futures Hurt ETFs?

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    ... futures contracts and attempt to match the return of the benchmark commodity. ... The
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    ... which deviates slightly by using futures, option and swap contracts, and ... Commodity
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  • The 5 Best Performing Gold ETFs - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1011/The-5-Best-Performing-Gold-ETFs.aspx
    ... The ETF forgoes investing in the actual commodity itself and instead purchases
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    ... Bank of China has started to set up bilateral currency swap lines with ... Commodity-
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  • Forex Currencies: Introduction | Investopedia

    http://www.investopedia.com/university/forex-currencies/
    ... While it is possible to swap virtually any currency for another, the ... other popular
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  • Forex Currencies: Introduction | Investopedia

    http://www.investopedia.com/university/forex-currencies
    ... While it is possible to swap virtually any currency for another, the ... other popular
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  • Forex Currencies: Introduction | Investopedia

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    ... While it is possible to swap virtually any currency for another, the ... other popular
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