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Basic Swap

Also a vanilla swap. It is a standard swap structure in which swaps have generic or well-defined features, especially in...

Cash Equitization

The purchase of an equity derivative such as an equity futures, an equity forward, or a synthetic equity option and collateralize it with an existing cash...

FVA

It stands for funding value adjustment; it constitutes part of x-value adjustments (XVA). By definition, it is the value adjustment...

FVA

An agreement (forward volatility agreement) that a seller and a buyer enter into in order to exchange a straddle option...

Gamma of Gamma

A third-order greek that measures the rate of change in the option gamma in response to a change in the...

Par Value Swap

A vanilla swap which has a zero net present value. That is, it involves no initial exchange of notional principal....

Horizontal Spread

An option or futures spread trade that is established by simultaneously buying and selling options or futures that have different...

Hawaiian Option

An option that combines an Asian option with an American option. Effectively, the combination produces an Asian option which allows...

Reset Swap

An interest rate swap in which the floating rate is set in arrears. This means, the floating rate is determined...

Banging The Close

A manipulative or disruptive trading practice whereby a trader buys or sells a large quantity of futures contracts during the...