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Corridor Swap

An interest rate swap that is designed so that payment obligations occur only when the reference rate is within some...

Short-Dated Swap

A swap whose tenor is less than two years. That implies that the fixed and floating rates have a maturity...

Base Rate Swap

An interest rate swap which involves the exchange of the interest payments based on two different rates (one of them...

Cross Currency Balance Guaranteed Swap

A balance guaranteed swap that is mainly used in cross-currency transactions whereby the coupons on one leg of the swap...

Cross-Currency Inflation-Indexed Swap

An inflation-indexed swap that is combined with a cross currency swap. This swap entails the exchange of two different cash...

Booking The Basis

A forward pricing sales arrangement which involves determining the cash price of a forward sales agreement (a futures contract) either...

Booking a Swap

The process of entering into a swap by a swap dealer. The swap in question is said to have become...

Futures-Style Option

Not to be confused with a futures option, it is a futures contract on an option’s payoff. In fact, a...

Tailored Swap

Any type of changing notional principal swaps which are essentially designed to meet the financing or foreign exchange needs of...

Path-Dependent Option with Weak Memory

A path-dependent option whose payoff, at the time of exercise or expiration, does not depend much on the price events...