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Cornering the Market

A trading irregularity which constitutes an illegal practice where a group of investors takes an influential long position in futures,…

COFI Swap

In the US, an interest rate swap in which the floating rate leg is referenced to the Cost of Funds…

Capped CMCDS

A constant maturity credit default swap (CMCDS) in which the rate is capped at a specific level. This swap combines…

Currency KIKO Option

A KIKO option that enables currency traders to sell a specific currency at a fixed exchange rate against another currency…

Call Short Butterfly

A neutral option strategy (broadly a short butterfly) that is based on three legs involving selling a low strike call,…

Carbon Derivative

A derivative in which the underlying is CO2 emission allowances (carbon credit or the so-called carbon emission certificates- EUA: European...

Collared FRN with Participating Caps and Floors

An FRN that is embedded with increased participation mechanism. In other words, the holder can get more participation levels as...

Commodity Product Spread

A spread that involves two related commodities: a primary (raw or unprocessed) commodity and one of its byproducts. In other…

Color

A sensitivity measure for options and other derivatives which calculates the change in gamma in response to the passage of…

Convertible Hedge

An arbitrage strategy that is based on buying a convertible security (like convertible bonds) and simultaneously selling short the issuing…