Many swaps "cancel out" other swaps (see the previous note). [fact]
Many swaps "cancel out" other swaps (see the previous note), and the replacement cost of a swap is usually much less than the notional principal, which does not change hands. So chapter l's caveats about the way in which total notional amounts overstate the economic importance of derivatives certainly apply to swaps.
Donald MacKenzie, An Engine, Not a Camera, loc. 1603