The difference between Swap and Total return swap

When used as nouns, swap means an exchange of two comparable things, whereas total return swap means a financial derivative that transfers both the credit risk and market risk of an underlying asset.


Swap is also verb with the meaning: to exchange or give (something) in an exchange (for something else).

check bellow for the other definitions of Swap and Total return swap

  1. Swap as a verb (transitive):

    To exchange or give (something) in an exchange (for something else).

    Examples:

    "synonyms exchange switch trade"

  2. Swap as a verb (transitive, obsolete):

    To hit, to strike.

  3. Swap as a verb (transitive, obsolete):

    To beat the air, or ply the wings, with a sweeping motion or noise; to flap.

  4. Swap as a verb (intransitive, obsolete):

    To descend or fall; to rush hastily or violently.

  1. Swap as a noun:

    An exchange of two comparable things.

    Examples:

    "quote-book lang=1819 w Sir Walter Scott w Tales of My Landlord section=The Bride of Lammermoor passage=I e’en changed it, as occasion served, with the skippers o’ Dutch luggers and French vessels, for gin and brandy... a gude swap too, between what cheereth the soul of man and that which dingeth it clean out of his body"

  2. Swap as a noun (finance):

    A financial derivative in which two parties agree to exchange one stream of cashflow against another stream.

  3. Swap as a noun (computing, informal, uncountable):

    Space available in a swap file for use as auxiliary memory.

    Examples:

    "How much swap do you need?"

  1. Swap as a noun (obsolete, UK, dialect):

    A blow; a stroke.

  1. Total return swap as a noun (finance):

    A financial derivative that transfers both the credit risk and market risk of an underlying asset.