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Covariance Swap

A covariance forward contract of two underlying prices/rates. This swap pays the excess of the realized covariance between two assets (such as currencies) over a constant...

Contra Swap

An offsetting or opposing swap which is designed to close out the market exposure of an existing swap position. For example, a fixed-rate-paying party...

CRC

It stands for current replacement cost; the amount that is required to replace an existing (active) swap in the event a...

Current Replacement Cost

The amount that is required to replace an existing (active) swap in the event a counterparty to the swap is unable to...

Compo Option

An exotic option whose underlying is a foreign asset (like a foreign equity) denominated in either domestic or foreign currencies and struck...

Call Swaption

A call option on a swap in which the buyer has the right, but is not obliged, to enter into...

Cleared Derivative

A derivative contract that, like an OTC derivative, is negotiated bilaterally (privately) between the two parties and is booked with...

Cartwheel

A complex options trading strategy which involves taking a long position in a ratio call spread (call backspread) and a...

CoS

It stands for coupon-only swap; a form of cross currency swap that entails no exchange of principal in two different...

Coupon-Only Swap

A form of cross currency swap that entails no exchange of principal in two different currencies at maturity, and only the...