FX Forward & Swap Lifecycle

Book, revalue daily, roll to extend the hedge, and settle at maturity

FX Forward & Swap Lifecycle Book, revalue daily, roll to extend the hedge, and settle at maturity 01 / Contract phases 02 / Roll / extend 03 / Terminal exit Booked · rate locked · Contract phases · entry 01 Booked rate locked entry Confirmed · matched w/ cpty · Contract phases · live 02 Confirmed matched w/ cpty live Mark-to-Market · revalued daily · Contract phases · daily 03 Mark-to-Market revalued daily daily Matured · settle or roll · Contract phases · due 04 Matured settle or roll due Settled · legs exchanged · Contract phases · done 05 Settled legs exchanged done Roll / Extend · swap: near + far · Roll / extend · extend Roll / Extend swap: near + far extend Cancelled · early unwind · Terminal exit · terminal Cancelled early unwind terminal Legend active state waiting terminal success failure / exit

Live Contract

  • • Booking locks the forward rate, no cash moves
  • • Mark-to-market revalues the position every day
  • • Settled discharges both currency legs

Roll Is A Swap

  • • Near leg closes the maturing forward
  • • Far leg reopens the hedge to a later date
  • • The new leg re-enters daily revaluation

Terminal Exits

  • • Matured leads to settlement at the value date
  • • Cancelled crystallises MTM before maturity
  • • No terminal state points back into the loop

Lifecycle diagram • Built with Archify • Create yours ↗ • Hover to trace • R route • Click to focus • +/− zoom • M radar • [/] views • P play story • T theme • E export