An Interest Rate Swap is an agreement between two counterparties to exchange cash-flows (e.g. a fixed rate, whose value is pre-established, versus a floating rate, whose value is reset with a pre-established frequency) in the same currency. Main features of the derivative (e.g. notional, payment dates, reset dates, etc ...) are defined at trade date.
The floating rate could be a Libor rate, the London Interbank Offer Rate (e.g. USD Libor for USA market, GBP Libor for British market etc ...) or its equivalent into other markets (e.g. Euribor rate for European market). These instruments are called also "plain vanilla" swaps.
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