swap

verb
\ ˈswäp \
swapped; swapping

Definition of swap 

(Entry 1 of 2)

transitive verb

1a : to give in trade : barter
2 : to take turns in telling swap stories

intransitive verb

: to make an exchange

swap

noun

Definition of swap (Entry 2 of 2)

: an act, instance, or process of exchanging one thing for another

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Other Words from swap

Verb

swapper noun

Examples of swap in a Sentence

Verb

He swapped his cupcake for a candy bar. I swapped seats with my sister so she could see the stage better. I liked her blue notebook and she liked my red one, so we swapped.

Noun

They made the swap in secret. we made a swap: I'll do the dishes tonight and she'll do them for me tomorrow
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Recent Examples on the Web: Verb

The popular high-precision Logitech MX Master wireless mouse, with an ergonomic design and the ability to swap between computers at the flick of a button, is also available on a steep sale at $60. Alexandria Haslam, PCWorld, "Upgrade your keyboard, mouse, and webcam for cheap in Amazon's Logitech blowout sale," 26 Sep. 2018 To swap her understated black and navy suede booties for a shiny new pair of heels for an appearance at The Wing later that evening. Chrissy Rutherford, Harper's BAZAAR, "Jhené Aiko Shops for the Perfect Pair of Heels," 9 Aug. 2018 Gender fluidity, and its embrace by the many designers now blurring lines between menswear and womenswear—and swapping clothes between male and female models on their runways—has certainly been a catalyst for the new hirsuteness. Maya Singer, Vogue, "To Shave, or Not to Shave? How a New Generation of Women Are Embracing Body Hair," 10 Dec. 2018 When unforeseen maintenance issues do occur or other operational issues get in the way, United is using machine learning to help swap out aircraft. Alyson Behr, Ars Technica, "More than an auto-pilot, AI charts its course in aviation," 5 Dec. 2018 Thus far Cheniere has swapped the U.S. volumes for supplies from other countries such as Australian LNG to be shipped to China, helping avoid the Chinese tariff on LNG originating in the U.S. Sarah Mcfarlane, WSJ, "Thaw With China Could Boost Frozen U.S. Gas Projects," 4 Dec. 2018 Instead, Day suggests swapping your body scrub for a Clarisonic facial brush and a salicylic acid cleanser, like Neutrogena Pink Grapefruit Body Wash, which has 2 percent salicylic acid to penetrate follicles and chamomile to soothe skin. Chloe Metzger, Allure, "How to Treat Keratosis Pilaris (aka "Chicken Skin") on the Back of Your Arms," 31 Oct. 2018 The Duchess kept on her purple sweater, but swapped the skirt for dark jeans, which blogger Meghan's Mirror reports are by Mother denim. Caroline Hallemann, Town & Country, "Meghan Markle Finishes Out the Royal Tour of New Zealand Wearing Prince Harry's Jacket," 31 Oct. 2018 Spice up your glassware this Halloween by swapping typical glasses for vials. Elle Decor Editors, ELLE Decor, "20 Halloween Party Ideas So Sophisticated They’ll Scare You," 18 Oct. 2018

Recent Examples on the Web: Noun

Critics of the project have said that the land swap was done so the developer could build the controversial apartments. Nicholas Sakelaris, star-telegram, "What's that gonna be: Mansfield's Shops at Broad project grows, including StarCenter | Fort Worth Star-Telegram," 2 Apr. 2018 But rather than tip the scales towards equity, the gender swap lays bare the fact that such deceptive and manipulative behavior from anyone is inexcusable. De Elizabeth, Teen Vogue, "I Really Tried to Like “Sierra Burgess,” But Catfishing Isn’t Romantic — It’s Harmful," 10 Sep. 2018 Then, the swap happens, with a neural network synthesizing video of the target individual based on the stick figure movements of source. James Vincent, The Verge, "Deepfakes for dancing: you can now use AI to fake those dance moves you always wanted," 26 Aug. 2018 The engine swap was complemented by adding a 102-inch, four-blade MT propeller to harness the PT6's power. Eric Tegler, Ars Technica, "One man designed and built the ultimate bush plane," 11 Aug. 2018 The Smith-for-Kirk Cousins swap, along with Doctson finally being healthy during the offseason, should lead to a big year for the 2016 first-round pick. Steven Ruiz, For The Win, "10 fantasy football sleepers we're irrationally excited about in 2018," 10 July 2018 The Belgium stopper is being discussed as one of the goalkeepers expected to be part of the stopper swap as Roma's Alisson has become of interest to Chelsea following Madrid's interest in the former Atletico man. SI.com, "Chelsea Stopper Thibaut Courtois Denies Mocking Everton and England Star's Height," 7 July 2018 Fittingly, most people found out about the dress swap on Twitter, when Bob the Drag Queen posted a photo of him wearing Jones’ dress alongside the original photo of Jones wearing the dress at the Ghostbusters premiere. refinery29.com, "Sisterhood Of The Traveling...Dress? Leslie Jones’s Gown Gets A Second Life," 4 July 2018 The swap Heinrich devised with the bill’s co-sponsor, New Mexico Senator Tom Udall, is less an exchange of one chunk for another and more a complex patchwork of trades. Hayden Carpenter, Outside Online, "Our Next National Park Could Be in New Mexico," 3 July 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'swap.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of swap

Verb

14th century, in the meaning defined at transitive sense 1a

Noun

1625, in the meaning defined above

History and Etymology for swap

Verb

Middle English swappen to strike; from the practice of striking hands in closing a business deal

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Statistics for swap

Last Updated

3 Jan 2019

Look-up Popularity

Time Traveler for swap

The first known use of swap was in the 14th century

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More Definitions for swap

swap

noun

Financial Definition of swap

What It Is

A swap is an agreement between two parties to exchange a series of future cash flows.

How It Works

Swaps are financial agreements to exchange cash flows. Swaps can be based on interest rates, stock indices, foreign currency exchange rates and even commodities prices.

Let's walk through an example of a plain vanilla swap, which is simply an interest rate swap in which one party pays a fixed interest rate and the other pays a floating interest rate.

The party paying the floating rate "leg" of the swap believes that interest rates will go down. If they do, the party's interest payments will go down as well.

The party paying the fixed rate "leg" of the swap doesn't want to take the chance that rates will increase, so they lock in their interest payments with a fixed rate.

Company XYZ issues $10 million in 15-year corporate bonds with a variable interest rate of LIBOR + 150 basis points. LIBOR is currently 3%, so Company XYZ pays bondholders 4.5%.

After selling the bonds, an analyst at Company XYZ decides there's reason to believe LIBOR will increase in the near term. Company XYZ doesn't want to be exposed to an increase in LIBOR, so it enters into a swap agreement with Investor ABC.

Company XYZ agrees to pay Investor ABC 4.58% on $10,000,000 each year for 15 years. Investor ABC agrees to pay Company XYZ LIBOR + 1.5% on $10,000,000 per year for 15 years.  Note that the floating rate payments that XYZ receives from ABC will always match the payments they need to make to their bondholders.

Investor ABC thinks that interest rates are going to go down. He is willing to accept fixed rates from Company XYZ

To do this, Company XYZ structures a swap of the future interest payments with an investor willing to buy the stream of interest payments at this variable rate and pay a fixed amount for each period.  At the time of the swap, the amount to be paid over the life of the debt is the same.


The investor is betting that the variable interest rate will go down, lowering his or her interest cost, but the interest payments from Company XYZ will be the same, allowing a gain (i.e. arbitrage) on the difference.

Why It Matters

Interest rate swaps have been one of the most successful derivatives ever introduced. They are widely used by corporations, financial institutions and governments.

According to the Bank for International Settlements (BIS), the notional principal of over-the-counter derivatives market was an astounding $615 trillion in the second half of 2009. Of that amount, swaps represented over $349 trillion of the total.

Source: Investing Answers

swap

verb

English Language Learners Definition of swap

 (Entry 1 of 2)

: to give something to someone and receive something in return : to trade or exchange (things)

: to replace (something) with something else

swap

noun

English Language Learners Definition of swap (Entry 2 of 2)

: an act of giving or taking one thing in return for another thing : a trade or exchange

swap

verb
\ ˈswäp \
swapped; swapping

Kids Definition of swap

 (Entry 1 of 2)

: to give in exchange : make an exchange : trade

swap

noun

Kids Definition of swap (Entry 2 of 2)

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swap

noun
\ ˈswäp\

Legal Definition of swap 

1 : an exchange of securities
2 : a derivative contract in which two parties (as corporations) agree to exchange rates especially relating to debt

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More from Merriam-Webster on swap

Rhyming Dictionary: Words that rhyme with swap

Thesaurus: All synonyms and antonyms for swap

Spanish Central: Translation of swap

Nglish: Translation of swap for Spanish Speakers

Britannica English: Translation of swap for Arabic Speakers

Comments on swap

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