Tag: derivatives
Over the Counter Trading
DefinitionOver-the-counter or off-exchange trading is done directly between two parties, without the supervision of an exchange. It is contrasted with exchange trading, which occurs...
Modern Economic Derivatives
Modern economies often utilize a set of complex system of measurements. This is certainly true when it comes to the stock market and international...
Macroeconomic Swap
What is 'Macroeconomic Swap' A type of derivative designed to help companies whose revenues are closely correlated with business cycles to reduce...
Abandonment Option
What is 'Abandonment Option' A clause granting parties the option of withdrawing from the contract before the fulfillment or completion of all...
Rate Anticipation Swap
What is 'Rate Anticipation Swap' A type of swap in which bonds are exchanged according to their current duration and predicted interest...
Canadian Derivatives Clearing Corporation (CDCC)
What is 'Canadian Derivatives Clearing Corporation - CDCC' The central clearing counterparty for exchange-traded derivative products, such as options and futures, in...
Callable Swap
What is 'Callable Swap' An exchange of cash flows in which one counterparty makes payments based on a fixed interest rate, the...
Call Swaption
What is 'Call Swaption' A type of option between two parties that can be exercised on a swap where the buyer of...
Call On A Call
What is 'Call On A Call' A type of compound option in which the investor has the right to exercise a call...
CDO – Collateralized Debt Obligation
What is CDO (Collateralized Debt Obligation)? Collateralized Debt Obligation or CDO is a financial product that brings together assets that can generate cash flow...