A forward to forward swap in which you buy and sell two forwards of the same type at different delivery dates.
Because this form can make banks take advantage of more favorable opportunities in time and profit from the exchange rate changes, it has been paid more and more attention and used.
There are two ways to trade forward to forward swaps. One is to buy forward currency with a shorter delivery period (e.g., 30 days) and sell forward currency with a longer delivery period (e.g., 90 days).
The second is to buy long term forward foreign exchange and sell short term forward foreign exchange.
Suppose a trader sells 1 million 30-day forwards and buys 1 million 90-day forwards at the same time. This transaction is called a forward to forward swap.
