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Dollar Delta

The delta value of a derivative or a position multiplied by the notional principal. It is the delta hedge of a derivative position expressed in dollars. This...

Bermudan Swaption

A Bermudan derivative which constitutes a Bermudan option on a swap. It is an option on a swap that allows the holder (the option's buyer or the...

Swap Novation

The creation of a new swap agreement, while simultaneously canceling the original or old one. This may take place if the terms...

Swap Term

The lifetime of a swap at the end of which parties to the swap no longer pay obligations since it ceases to...

Swap Tenor

The lifetime of a swap at the end of which parties to the swap no longer pay obligations since it ceases to...

Swap DV01

A swap dollar value of one basis point (0.01%). It refers to the change in the present value of a swap in response to...

Market Maker

For a specific option, it is an individual trader who stands ready to quote both a bid and an offer price on the...

M2M

It stands for marking to market; the practice which is used to revalue a financial instrument, in general. In the...

MTM

It stands for marking to market; the practice which is used to revalue a financial instrument, in general. In the...

Marking To Market

The practice which is used to revalue a financial instrument, in general. In the context of derivatives, marking to market...