Variations

There are two main types of cross currency swaps: floating-for-floating and fixed-for-floating.
[edit]Floating-for-floating CCS
In a floating-for-floating cross currency swap, the interest rate on both legs are floating rates. Such
swaps are also called cross currency basis swap. Floating-for-floating swaps are commonly used
for major currency pairs, such as EUR/USD and USD/JPY.
[edit]Fixed-for-floating CCS
In a fixed-for-floating cross currency swap, the interest rate on one leg is floating, and the interest rate
on the other leg is fixed. Such swaps are usually used for a minor currency against USD.
[edit]Mark-to-market CCS
In a regular cross currency, the notional amounts of both legs are constant during the life of the swap.
However, in a mark-to-market cross currency swap, the notional amount of one of the legs is
subject to adjustment while the notional amount of the other leg remains constant. The mark-to-
market variation is paid or received.
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