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American Swaption

An interest rate swaption (swaption) that can be exercised at any time within a specified range, perhaps following a lockout...

Hamster Option

A variant of range option which was developed by the Swiss Banking Corporation. It could have also be given another...

HAMSTER

It stands for hope for a market stabilization in a given range, which is one of the numerous names for...

HR

It stands for hedge ratio; the ratio of the value of long or short futures contracts to the value of...

Hit Warrant

A barrier warrant that knock in (activates) or knocks out if the underlying (security, index, etc.) hits or passes through...

Quanto Forward Contract

A forward contract which allows the holder to receive an unidentified amount of the underlying, depending on a price denominated...

Position Delta

The sum of all positive and negative deltas within a hedge trade position. It captures the delta of a complex...

Coal Swap

A commodity swap which entails the exchange of a fixed coal price for a floating coal price. For example, a...

POS

It stands for principal-only swap; a type of currency swaps which involves the exchange of principal between two currencies. In...

Macro Option

An option in which the underlying benchmark is a macroeconomic variable or index. This option is pegged to the level...