Applied risk management series: OTC commodity swaps valuation, hedging and trading

OTC commodity swaps valuation, hedging and trading

OTC swap markets

In a fixed-for-floating swap, two parties agree to exchange the difference between a floating price and a fixed price, multiplied by a negotiated notional amount for one or more settlement periods. Single-settlement swaps are also referred to as ‘forwards’ by many market participants. Swaps are financially settled, which means that the parties meet their contractual obligations by cash transfers.

When a hedger enters into an over-the-counter swap, they receive compensation when the market moves

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here