Swaps are financial agreements used to exchange cash flows or other financial instruments. In natural gas hedging, swaps can be used to stabilize costs and revenues. This article explains the different types of swaps, including fixed-for-floating and basis swaps, and how they work. By entering into swap agreements, companies can manage their exposure to price volatility and achieve more predictable financial outcomes. Practical examples illustrate how swaps are used in natural gas hedging to mitigate risks and enhance financial stability.