Reversible Swap

You go to a key party and don't like the looks of the rest of the people there. You turn around and head right back out the door. One form of reversible swap.

Another kind involves financial instruments. A typical swap (well, a typical financial swap) involves trading the proceeds from one financial instrument with that of another. Usually, the process involves trading the income generated from a fixed-rate investment with that created by an adjustable-rate one. Basically, trading a security for the chance of higher upside, or vice versa.

A reversible swap allows the sides to...switch.

You trade a fixed-rate income for a floating-rate income. It's a reversible swap, so if you get tired of a the roller-coaster ride of the adjusted rates, you can reverse the transaction, i.e. go back to the safety and security of your fixed-rate return.