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Break Forward

A currency market tool, similar to an option, which is used principally to avail of a move in the underlying...

Call Reverse Knockout

A reverse knockout option (RKO option) in which the barrier is at a level above the spot underlying price. This...

Call RKO

It stands for call reverse knock-out; a reverse knock-out option (RKO option) in which the barrier is at a level...

Premium Leg

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

Default Swap Spread

In connection with a default swap (or a credit default swap), it is the periodic payment that is made by...

Default Swap Premium

In connection with a default swap (or a credit default swap), it is the periodic payment that is made by...

Swap Premium

In general, it is the price of a swap- i.e., the amount paid by the swap buyer to the swap...

Premium Swap

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

Swap Positioning

A practice whereby an intermediary enters into one side of the swap transaction, such as fixed rate payer (or floating...

Swap Duration

A measure of a swap's value sensitivity to interest rate changes. The duration of a swap is equal to the...