Okuzeka
Finance & Banking vocabulary · Payments & Cards

Payment-versus-payment

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, payment-versus-payment means: An arrangement linking two currency payments so that one settles only if the other settles.

In Turkish: ödeme karşılığı ödeme

How it is used

Often written PvP; use for currency settlement rather than a purchase paid in instalments.

Example sentences

  1. The dealers used payment-versus-payment to settle the dollar and euro legs.

    Linking both currency legs reduces one-sided delivery exposure.

  2. A currency outside the service's coverage could not use payment-versus-payment.

    Availability depends on the currencies and arrangements supported.

Common collocations

  • payment-versus-payment settlement
  • PvP arrangement
  • foreign exchangeThe buying and selling of currencies, or foreign currency itself. It is often shortened to FX or forex.
  • counterparty riskThe risk that the other party in a financial deal, such as a derivative, repo or FX trade, fails to pay or deliver what it owes before the deal is completed.

More terms: Payments & Cards

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This page explains English vocabulary for learners. It is not financial advice.