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Cliquet

A set of component options known as cliquetlettes that expire one succeeding the other. As an option, a cliquet resets...

Cliquet Option

A time-dependent option contract that consists of a series of consecutively-activated, at-the-money forward start options, each of which is struck...

Multi-Currency Credit Default Swap

A credit default swap (CDS) that is traded in multiple currencies, i.e., protection, in case of default, is paid by...

Quanto Default Swap

A credit default swap (CDS) in which the swap premium payments, and/or the cashflows in the case of default, are...

Sovereign CDS

A credit default swap (CDS) that constitutes insurance contracts offering protection against the default of a sovereign government or authority...

Cash Settlement

A procedure which is used in certain option and futures transactions whereby a transaction is settled with the cash payment...

Buying The Basis

Going long the basis, or more specifically the purchase of a cash-market investment instrument such as cash bonds or index...

Buying Hedge

A hedging transaction which involves buying futures contracts (long futures) to protect an investor against possible increases in the price...

Buying On Margin

Opposite of buying outright, in simple terms, it is borrowing to buy stocks. More specifically, it is buying stocks using...

Ratchet-Collared Floater

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