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Reverse Breakeven

The point at which a short option or option spread executed at a credit breaks even (it produces neither profit...

Reverse Collar

It is the opposite of a collar, and refers to simultaneously buying a floor (interest rate floor, equity floor, etc)...

Reverse Dual Strike Option

An option which is the reverse of a dual strike option. The reverse dual strike option has its payoff defined...

Reverse Snowball

Another name for a snow bear; By definition, it is a hybrid derivative instrument that is used by investors willing...

Reverse Index Amortizing Swap

An index amortizing swap that is structured in a reversed way so that if the underlying reference rate decreases, the...

Reverse Cash and Carry

A cash and carry transaction that is reversed. It involves the simultaneous sale of a cash market commodity/ instrument for...

Ratchet-Collared Floater

A collared floater in which the caplet/ floorlet strikes increase at particular intervals/ increments (and hence the ratchet feature). The...

Ratchet Swap

A interest rate swap (fixed rate for floating rate or fixed-for-floating swap) whereby the fixed rate leg can be modified...

Ratchet Floater

A structured note (FRN) that pays a floating interest rate referenced to a popular market rate such as LIBOR. Each...

Ratchet Option

A time-dependent option that locks in gains once predetermined price levels are reached by the underlying. The “ratchet” label refers...