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Power Option

An option whose payoff is based on the price of an underlying asset raised to a power. It is designed to allow the buyer...

ColVA

It stands for collateral value adjustment/ collateral valuation adjustment; the pricing adjustment made for a collateralized derivative. It represents the cost of...

Swap BPV

The basis point value (BPV) of a swap is the amount by which the swap's value changes in response to a change of one basis...

Swap Coupon

The fixed-rate of interest on the fixed-rate leg of an interest rate swap or a currency swap (or any similar structures). More specifically, swap...

Structured Product

A financial instrument that combines at least one derivative contract with underlying assets such as stocks and fixed-income securities. It is a hybrid instrument that...

Short a Swap

The position of the fixed-rate receiver (who is also the floating-rate payer) on an interest rate swap. In a plain vanilla swap, the short side trades a...

Outperformance Swap

A variant on equity-linked swap in which the equity leg is linked to the larger of the total returns on at least...

Accumulator Option

A regular forward contract in which the notional is determined over the lifespan of the option rather than as a preset amount. This structured...

Long Synthetic Futures

A synthetic futures which consists of buying calls and selling the same amount of puts with the same strike price and expiration date. Long synthetic futures = (long...

Prepaid Swap

A swap agreement where payment is made upfront for specific quantities of an asset or commodity that would be delivered at multiple specified times...