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Swap commodity

• The buyer of the swap agrees to make a number of payments periodically tied to the price of a commodity such as oil and receive fixed payments. By entering into a commodity swap, both parties attempt to hedge their exposures to the commodity prices.

 
 

Follow this link for all the terms related to swap.

 
 Embedded terms in definition
 Commodity
Hedge
Prices
Swap
 
 Related Terms
 

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