The floating index is commonly an interbank offered rate (IBOR) of specific tenor in the appropriate currency of the IRS, for example in USD, GBP, in EUR or STIBOR in SEK. Each of these series of payments is termed a 'leg', so a typical IRS has both a fixed and a floating leg. The most common IRS is a fixed for floating swap, whereby one party will make payments to the other based on an initially agreed fixed rate of interest, to receive back payments based on a floating interest rate index.
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