Overnight Index Swap (OIS): An Overnight Index Swap is an investment tool that allows investors to swap, or exchange, cash flows over time. It involves the exchange of one party’s exposure to a variable rate financial instrument, such as an overnight loan, for another party’s fixed-rate payment. This helps investors manage their interest rate exposure and can be used for various strategies like hedging or arbitrage. With its ability to provide stable returns using minimal capital, the Overnight Index Swap is a popular investment tool among savvy investors looking to maximize their potential profits.