The payment obligations in a swap are netted at the end of each swap period, and so only a relatively small cash settlement results.

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This statement is true. In a swap, the payment obligations between the two parties are netted (or calculated) at the end of each swap period, typically every six months. This means that only the difference between the two payment obligations needs to be settled in cash, resulting in a relatively small cash payment.

The Payment Obligations in a Swap Are Netted at the End