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Step Down Swap

An interest rate swap in which the fixed-rate payments are reduced over the term of the swap. It is a...

LIBOR

It stands for London Interbank Offered Rate. It is the rate of interest at which AA-rated banks borrowed large amounts...

LIBOR Swap Rate

The fixed rate on a single-currency, fixed-notional interest rate swap that has its floating-rate leg referenced to LIBOR with no...

KO Barrier Option

A barrier option that is equipped with a knock-out (KO) barrier- a barrier that allows it to deactivate (knock out)...

Zero-Cost Hedge

An option trading which is arranged such that the premium received from an option sold (short option) compensates for the...

Knock-Out Barrier Option

A barrier option that is equipped with a knock-out barrier- a barrier that allows it to deactivate (knock out) immediately...

LIBOR-Squared Swap

An aggressive (and rare) form of interest rate swaps (literally a power swap) which was first entered into between Gibson...

ET Option

An option (exchange-traded derivative) that trades on organized and regulated exchanges, as opposed to options trade over the counter. Exchanges...

Exchange-Listed Option

An option contract, call or put, that trades (i.e., is listed) on an organized or regulated securities or futures exchange....

Exchange-Traded Option

An option (exchange-traded derivative) that trades on organized and regulated exchanges, as opposed to options trade over the counter. Exchanges...