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Floating-Rate Payer

A party to an interest rate swap who makes, to a fixed rate payer, variable (floating) interest rate payments based...

Fixed-Rate Payer

A party to an interest rate swap in which payment is based on a swap rate or the coupon rate...

Covered Position

Generally, a covered position is an outright long position or short position that is covered-i.e., protected, by an offsetting hedging...

Long Position

When an investor purchases a stock on expectation its price will rise, he is said to have taken a long...

Moving Average Floor

An interest rate floor whose payout (payoff) is calculated using a moving average interest rate within a specified interval. The...

Moving Average Cap

An interest rate cap whose payout (payoff) is calculated using a moving average interest rate within a specified interval. The...

Moving Strike Option

An option that is composed of a sequence of forward-starting options. The option’s strike price for the next maturity date...

Forward Swaption

An option that gives its holder the right, without the obligation, to enter into a forward swap at a given...

Forwardation

A pricing structure in securities, foreign currencies and commodities trading wherein the prices of far future deliveries exceed those of...

Cross Vanna

An option sensitivity (literally a cross Greek) that measures the rate of change of vega in one underlying in reaction...