swaption

S1W4A1P3T1I1O1N1

noun

An instrument granting the owner an option to enter an interest rate swap.

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Meanings

nounswaption (plural swaptions)

plural swaptions

  1. businessAn instrument granting the owner an option to enter an interest rate swap.
  2. businessMore generally, an option on any type of swap.

Origin

Blend of swap + option.

Full word history & related roots →

Translations

French swaption
  • swaptioninstrument granting the owner an option to enter an interest rate swap
Italian swaption
  • swaptioninstrument granting the owner an option to enter an interest rate swap
Polish swapcja
  • swapcjainstrument granting the owner an option to enter an interest rate swap
Cite this entry
APA

swaption. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/swaption

MLA

“swaption.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/swaption. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “swaption,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/swaption.

Source: swaption on Wiktionary, CC BY-SA 4.0.