# Total Return Swap

*Derivatives & Options — Finicade finance glossary*

A total return swap pays one party the entire return of an asset — price change plus income — for a financing rate, without them ever owning it.

A total return swap pays one party the entire economic return of an asset — price change plus income — in exchange for a financing rate, without that party ever owning it. It delivers leverage and, crucially, avoids disclosure thresholds that apply to actual shareholdings. That combination is what let Archegos build enormous concentrated positions invisibly across several banks in 2021 before losing them in days.

**Also known as:** TRS, total return swaps

**Related terms:** [Swap](https://finicade.com/glossary/swap), [Leverage](https://finicade.com/glossary/leverage), [Counterparty Risk](https://finicade.com/glossary/counterparty-risk), [Hedge Fund](https://finicade.com/glossary/hedge-fund), [Notional](https://finicade.com/glossary/notional)

Source: https://finicade.com/glossary/total-return-swap