- The definition of a swap is a trade or exchange.
An example of a swap is a child trading his pretzels for popcorn at snack time.
- To swap is defined as to trade or exchange.
An example of to swap is give a friend a scarf in exchange for a pair of mittens.
swap definition by Webster's New World
Origin: Middle English swappen, to strike (prob. echoic): from the striking of hands on concluding a bargain
- an exchange, trade, or barter
- Finance a negotiated contract as between two corporations for a mutually beneficial exchange of currencies, loans, etc.
- swapper noun
swap definition by American Heritage Dictionary
verb swapped swapped, swap·ping, swaps verb, intransitive
- An exchange of one thing for another.
- A contract in which two parties agree to exchange periodic interest payments, especially when one payment is at a fixed rate and the other varies according to the performance of a reference rate, such as the prime rate.
Origin: Middle English swappen, to strike, strike the hands together in closing a bargain.
- swapˈper noun
swap - Computer Definition
swap - Investment & Finance Definition
A custom-made and negotiated transaction designed to manage financial risk over a period of 1 to 12 years. Two individuals can create a swap, or a swap may be made through a third party such as a brokerage firm or a bank. Swaps are used to manage risk and often settlements occur in cash, not in delivery of the actual product or financial instruments. Examples of swap transactions include currency swaps, interest rate swaps, and price swaps for a variety of commodities. An example of a currency swap is an agreement to sell $1 million of Japanese yen three months in the future at ¥116.50.