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      Question

      The 'Tom Next' swap in forex markets refers

      to:
      A A swap for tomorrow against the next day Correct Answer Incorrect Answer
      B A swap for today against tomorrow Correct Answer Incorrect Answer
      C A swap for the spot date against the next day Correct Answer Incorrect Answer
      D A swap for tomorrow against the spot date Correct Answer Incorrect Answer

      Solution

      In forex jargon, 'Tom' stands for tomorrow and 'Next' stands for the day after tomorrow. A 'Tom-Next' swap is the simultaneous buying and selling of a currency, where the buy (or sell) is for tomorrow and the offsetting sell (or buy) is for the next day.

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