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Swap Transferring Risk with Participating Element

A hedging tool that combines an interest rate swap with a participating cap or a participating floor. This structure provides both…

Short Call Synthetic Straddle

A neutral option strategy (in essence, it is a short straddle strategy) that is based on two legs involving selling…

Short Iron Butterfly

An option trading strategy that combines a bull call spread with a bear put spread. It could also be constructed…

Staged Drawdown Swap

An interest rate swap whereby the notional principal amount grows over its time to expiration. Such a swap is particularly…

Standardized Tranche Credit Default Swap

A type of first loss credit default swaps (FLCDS) or tranche loss credit default swaps (TLCDS) in which the reference asset…

Short Guts Spread

A guts spread that is established by combining short in-the-money calls and short in-the-money puts, with all options having the…

Short Synthetic Futures

A synthetic futures which consists of a short call and a long put: Short synthetic futures position = short call…

Managed Futures

A futures fund or portfolio that is managed by professional money managers (known as commodity trading advisors or CTAs for…

Maximum Price Fluctuation

The largest change a futures contract can have in a single trading session before a trading halt is triggered. The…

Mega Premium Option

An option that pays the seller an enlarged or enhanced premium on the condition that the seller refunds the premium…