Swap (finance)

Swaps are a type of financial agreement that allow people or businesses to make an even exchange of resources, like money or other assets. It is a bit like trading cards with a friend, where both of you give something to the other and get something you want in return. With swaps, people or businesses exchange interest payments. So one side will pay a certain amount of interest (which is a bit like a reward for giving the other side the money) while the other side will pay the same amount of interest in return.