easy · FRM Part 1
What is the primary difference between a 'swap' and an 'FRA'?
- FRAs are exchange-traded, while swaps are always OTC.
- FRAs only use fixed rates, while swaps only use floating rates.
- An FRA is a single-period contract, whereas a swap covers multiple periods.
- Swaps involve principal exchange, while FRAs do not.
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