CFAI: An FX swap transaction consists of offsetting and simultaneous spot and forward transactions, in which the base currency is being bought (sold) spot and sold (bought) forward.
Can we do both forward legs?
For example, Jeff has a short EUR agn USD hedged fx forward position, value day: Mar 31. Intend to roll over to June 30.
Can Jeff do fx swap with below to roll over on Mar 23 (instead of 2 days before hedged expired)
Near leg: buy EUR ang USD value: Mar 31
Far leg: short EUR agn USD value: June 30
Can we do both forward legs?
For example, Jeff has a short EUR agn USD hedged fx forward position, value day: Mar 31. Intend to roll over to June 30.
Can Jeff do fx swap with below to roll over on Mar 23 (instead of 2 days before hedged expired)
Near leg: buy EUR ang USD value: Mar 31
Far leg: short EUR agn USD value: June 30