Swaps are a type of derivative instrument that can be used to invest in commodities without actually holding the physical commodity. Here are some key points about commodity swaps:

- _Commodity price exposure_: Commodity swaps allow investors to gain exposure to the price movement of a commodity without physically holding it.

- _Contractual agreement_: A commodity swap is a contractual agreement between two parties to exchange a series of cash flows based on the price of a commodity.

- _Fixed and floating legs_: One party agrees to pay a fixed price (fixed leg), while the other party agrees to pay a floating price (floating leg) based on the market price of the commodity.

- _Cash flow exchange_: The parties exchange cash flows based on the agreed-upon prices, with the fixed price payer receiving the floating price cash flows and vice versa.

- _No physical delivery_: No physical commodity is exchanged, only cash flows based on the commodity's price.

- _Hedging and speculation_: Commodity swaps can be used for hedging (managing risk) or speculation (taking a position on price movements).

Commodity swaps offer flexibility and can be tailored to meet specific needs, but they also involve risks, such as market risk, counterparty risk, and liquidity risk.