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.

In an equity swap, one party pays the equity's total return (dividends and capital appreciation) while the other pays a fixed or floating rate. Equity swaps provide investors with exposure to …

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]

What is an Equity Swap Contract? 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 …

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 …

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 …

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 …

Sep 18, 2025 · Learn what an equity swap is, how it works, and why it matters in finance—simple, clear, and useful for investors at all levels.

Nov 14, 2024 · Equity swaps are used for hedging, speculating, or obtaining exposure to an equity without owning the actual stock. They allow investors to benefit from stock price …

Oct 16, 2025 · In modern financial markets, equity swaps are sophisticated derivative instruments that allow two parties to exchange future cash flows based on the performance of an …