Tag: swap

Cancelable Insurance

What is 'Cancelable Insurance' This is insurance that may be canceled, at any time, by the insured party or by the insurance...

Calculation Agent

What is 'Calculation Agent' An entity that determines the price of an investment product such as a swap. A calculation agent calculates...

Paper Dealer

What is 'Paper Dealer' A market maker that buys and sells extremely short-term corporate bonds called commercial paper. A paper dealer is...

Pairoff

What is 'Pairoff' 1. A purchase of securities to offset a previously transacted sale of the same security. 2. A...

Parallel Loan

DefinitionA parallel loan is two loans taken out by two pairs of companies in different countries from local lenders with the aim of swapping...

Quanto Swap

What is 'Quanto Swap' A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on...

Quality Spread Differential (QSD)

What is 'Quality Spread Differential - QSD' The term 'quality spread differential', or QSD, refers to the difference between the price of a low-quality commodity...
Variance Swap

Variance Swap

Definition A variance swap is an over-the-counter financial derivative that allows one to speculate on or hedge risks associated with the magnitude of movement, i.e....

Variable Interest Rate

What is a 'Variable Interest Rate' A variable interest rate is an interest rate on a loan or security that fluctuates over...
Variation Margin

Variation Margin

How to Calculate Variation and Maintenance Margin In futures trading, you must provide variation margin to your broker if you want to continue trading. If...

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