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Participating Swaption

An option that allows the holder to enter into a participating swap. In other words, the holder has the right...

Participating Swap

A swap which allows one of the counterparties to participate in favorable movements in the underlying rate/price, while giving that...

Participating Forward

A forward contract which is enhanced with an embedded floor to protect the holder from substantially adverse price movements in...

Protection Leg

In relation to a default swap (a credit default swap/ CDS), it is one of the two legs of the...

Premium Leg

A regular stream of payments made by the protection buyer to the protection seller in a default swap (a credit...

Premium Swap

An interest rate swap by which the counterparties agree to an interest rate that differs from the prevailing market rates....

PoC

A put option on a call option. It gives the holder the right, without the obligation, to sell a call...

Portfolio Swap

A swap that references a set of single name credit default swaps. The portfolio will be customized to meet the...

Proxy Hedge

A transaction that, as opposed to a direct hedge, involves hedging one commodity with a contract for a different commodity....

Prepaid Forward Contract

A forward contract that calls for payment today and delivery of the underlying asset or commodity at a future date....