Cryptocurrency Q&A How does a basis swap work?

How does a basis swap work?

Sara Sara Mon Sep 16 2024 | 5 answers 504
Can you please explain, in simple terms, how a basis swap operates? I'm particularly interested in understanding the mechanics behind it and how it benefits both parties involved in the transaction. I've heard it's a popular financial instrument used in the cryptocurrency and finance world, but I'm still trying to wrap my head around its intricacies. Would you be able to break it down for me, step by step? How does a basis swap work?

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