Hello,It is usual to see swaps that have the same notional principal amount for the two legs of the swap.Could the notional amount be different for the two legs, at the start of the swap??Thank you.

It would require an upfront payment at the start from one party to the other, which is inconvenient and goes against the basic concept of swaps: derivatives that initially have zero value

Perfect, thank you. So at the start of the swap it doesn't happen, but during the life of the swap it could be possible? For example consider an equity swap that exchange the return of two different index, with variable notional principal. At the start of the swap the notional is 1$ for both index and the value will be 0, then after the first payment the notional will change, but in which way? It will change for both index (respectively to the new level of Index 1 and Index 2) or the counterparty have to choose at the start to which index the notional is pegged?? Thank you again.

It would be unusual, but anything is possible...

QuoteOriginally posted by: acastaldoIt would require an upfront payment at the start from one party to the other, which is inconvenient and goes against the basic concept of swaps: derivatives that initially have zero valueAssuming the parties have CSA in place, this is just moving $ through the collateral account. Might be disadvantageous for the desk, depending on the direction and cost of funds.