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
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
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...