FX Swap Quant Interview Guide
FX swap quant interview guide for near and far legs, forward points, funding, liquidity, settlement, examples, and caveats.
Candidates discussing FX funding and spot-forward combinations.
An FX swap combines two exchanges
An FX swap typically exchanges currencies on a near date and reverses the exchange on a far date. It is often discussed as a funding tool.
Forward points drive economics
The far-leg rate relative to the near-leg rate reflects interest differentials, funding conditions, and market conventions.
Concrete example
A participant needing dollars temporarily can exchange another currency for dollars now and agree to reverse the exchange later.
Do not confuse swaps
An FX swap is different from a cross-currency interest rate swap or a plain interest rate swap. Name the legs and cash flows.
Common mistakes
Candidates often describe only one exchange. The key is the paired near and far transactions plus funding and settlement assumptions.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.