How to get profit from swap rate fx?

Question

How to get profit from swap rate fx?

Answer 1

what is a swap rate ?

Answer 2

This can be explained by the following example:

Suppose a U.S.-based company needs to acquire Sterling Pounds and British-based company needs to acquire U.S. dollars. These two companies could arrange to swap currencies by establishing an interest rate, an agreed upon amount and a common maturity date for the exchange.

Thus Currency swap maturities are negotiable for at least 10 years, making them a very flexible method of foreign exchange.