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Lookalike Option

An over-the-counter option that is cash-settled based on the settlement price of a similar exchange-traded futures contract on a certain...

Lookalike Swap

An over-the-counter (OTC) swap that is cash-settled based on the settlement price of a similar exchange-traded futures contract on a...

Zero-Coupon Inflation Swap

A type of inflation derivative; an inflation-indexed swap which has both cash flow legs paying out on maturity. This swap...

Long Put Strip

An option trading strategy which is constructed by buying from three and up to eight put options. In this strategy,...

Call Leverage

An option leverage that measures the sensitivity of a call option’s price to changes in the underlying price. In other...

Low Outlay Geared Option

A low premium option (specifically a put) which allows the holder to participate in an upside movement with a gradually...

Long-Dated Option

An option which expires after more than a year (e.g. 1, 2 or 3 years). Traders buy long-dated options with...

Long-Dated Swap

A long-term swap agreement between two parties to exchange two different sets of cash flows for a minimum of time...

Dividend Protection

Adjusting the strike price of an OTC option by the amount of dividends paid on the underlying asset/ stock. This...

Step Option

A path-dependent option which is parameterized by a finite knock-in (knock-out) rate. The payoff at expiration is equal to that...