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No, absolutely not the next CDO. FX is just foreign exchange. They don't last as long. They are not a derivative and not a derivative of a derivative. They are not for short term investors and not for individuals. The fact that we can enter into does not mean that we should. An FX swap, is an agreement to accept currency A for currency B on Date C. It is usually a hedge. For example, you see products to another company, that company's functional currency is different than yours and is going to pay you 1000 currency A on Feb 15. You know what is in US dollars today, but you wanted to be protected from currency fluctuations before payment. So you can lock in your rate. This is sometime called an FX forward. Further out may be called swaps, but sometimes people use swaps just to refer to swapping interest rates on short term debt in a different currency too. Is almost always a hedge transaction to balance your front side exposure. Entering into FX trading, just to be exposed is basically roulette.