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- vienneseblues
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how do you calculate the basis in a basis swap...?
and what is the FX risk involved, if there is initial and final exchange? Thanks
how do you calculate the basis in a basis swap...?
there's a basis swap market where you can get the basis swaps...
how do you calculate the basis in a basis swap...?
The FX Risk is the basis swap Net value!to hedge it you need to but/sell this amout in the FX spot market!ps. Basis Swap= is the swap spread to add/substract to your local swap rate against a USD swap leg!