what is swap long and swap short in forex
Foreign exchange swap Once a foreign exchange transaction settles, the holder is left with a positive (or "long") position in one currency and a negative (or "short") position in another. In order to collect or pay any overnight interest due on these foreign balances, at the end of every day institutions will close out any foreign balances and re-institute them for the following day. To do this they typically use "tom-next" swaps, buying (or selling) a foreign amount settling tomorrow, and then doing the opposite, selling (or buying) it back settling the day after.
Short-circuit test The test is conducted on the high-voltage (HV) side of the transformer where the low-voltage (LV) side or the secondary is short circuited. A wattmeter is connected to the primary. An ammeter is connected in series with the primary winding. A voltmeter is optional since the applied voltage is the same as the voltmeter reading. The LV side of the transformer is short circuited. Now with the help of variac applied voltage is slowly increased until the ammeter gives reading equal to the rated current of the HV side. After reaching at rated current of HV side, all three instruments reading (Voltmeter, Ammeter and Watt-meter readings) are recorded. The ammeter reading gives the primary equivalent of full load current IL. As the voltage applied for full load current in short circuit test on transformer is quite small compared to the rated primary voltage of the transformer, the iron losses in transformer can be taken as negligible here.