Sep 7, 2025 · What Is an Equity Swap? Equity swaps allow parties to trade cash flows based on the performance of equity indices, facilitating income diversification and risk management.

An equity swap is a financial derivative contract (a swap) where a set of future cash flows are agreed to be exchanged between two counterparties at set dates in the future. [1]

Equity swaps are derivative contracts involving the exchange of cash flows based on the performance of one or more underlying equities. In an equity swap, one party pays the equity's total return (dividends …

An equity swap contract is a derivative contract between two parties that involves the exchange of one stream (leg) of equity-based cash flows linked to the performance of a stock or an equity index with …

Dec 7, 2025 · What Is an Equity Swap and How Does It Work? Understand equity swaps: how these derivatives exchange equity performance for interest rate payments, detailing structure, mechanics, …

Aug 31, 2023 · An equity swap is a financial derivative instrument where two counterparties agree to exchange a set of future cash flows, typically an equity-based return against a fixed or floating …

Oct 25, 2024 · An equity swap is a financial derivative contract in which two parties agree to exchange cash flows based on the performance of an underlying equity asset and equity index, which is …

Apr 12, 2025 · An equity swap is a derivative contract that allows parties to exchange the returns of an equity instrument (such as stocks) for another asset (usually cash or fixed income securities).

Nov 15, 2025 · Equity swaps are complex financial instruments that can be used for a variety of purposes, including hedging equity risk, accessing hard-to-reach markets, and taking positions …

Learn about equity swaps, their definition, benefits, and risks to be considered. Discover how they work in financial transactions with an example.