Glossary

Your ultimate guide to derivatives terminology

With its constantly updated lists of option terminology and FX, CM, EQIR and CD instruments, SD's definitive online glossary is an invaluable resource for both new and experienced market participants.






Accreting swap

An accreting swap is a swap in which the notional accretes (or increases) over the life of the swap ...

Accrual EQ

An accrual is a structured product that can be wrapped as either of the following—a note (or bond) or a swap.

Accrual options

An accrual option is composed of a strip of European digital options.

Accumulator forward in one sided option

An accumulator in one sided is an accumulator option where both the following are true ...

Accumulator forward in range option

An accumulator in range is an accumulator option where both the following are true ...

Accumulator forward out one sided option

An accumulator out one sided is an accumulator option where both the following are true ...

Accumulator forward out range option

An accumulator out range is an accumulator option where both the following are true ...

Accumulator leverage forward

The accumulating leverage forward is supported in the Single Option page in SD-FX. You ...

Accumulator options overview

An accumulator option is a regular forward contract where the notional of the forward is determined over the life of the option up to the expiry date rather than by a predefined value ...

Accumulator with knock out

An accumulator with knock out is a regular accumulator option with the addition of an American knock out barrier ...

American style option

An option that can be exercised at any point during the life ...

American swaption

An American swaption is a swaption that can be exercised on any date that falls within a specified range—that is ...

Amortizing swap

An amortizing swap is a swap in which the notional amortizes (or declines) over the life ...

Arbitrage

Arbitrage is the ability to generate a profit without engaging in risk by taking ...

Asian

An Asian can be priced in either pricing page. Its shortcut is a ...

Asian strategy

An Asian strategy is a combination of two of the four basic Asian options ...

Asian strip

An Asian strip can be priced in either pricing page. Its shortcut is as ...

Asian strip strategy

An Asian strip strategy is simply a series of ...

Ask

The ask price is the price at which the market maker is willing to sell an asset.

Asset class

An asset class is a specific group of investments.

ATM option

An ATM (at-the-money) option is an option where the strike is the same as the current underlying.

ATM volatility

ATM volatility shows the calculated mid-rate volatility for an ATM option for the chosen expiry date.

Autocallable

An autocallable bond is a structured product which offers an opportunity for both early redemption at a predefined cash amount and high coupons...

Average forward option

In an average forward the payout is determined by the difference between the forward rate (or strike)...

Average life value

The average life shows the effective maturity for an instrument's amortized leg in years.

Average options overview

An average option is a cash-settled option whose payout...

Average rate option

An average rate option is a cash-settled option whose payout is calculated on the expiry date...

Average rate with knock in option

An average rate with knock in option is an average rate option with the addition of an knock in barrier.

Average rate with knock out and rebate option

An average rate with knock out option can also be priced with a rebate.

Average rate with knock out option

An average rate with knock out option is an average rate option with the addition of an knock out barrier.

Average strike option

In an average strike option the strike is not predefined.

Average strike with knock in option

An average strike with knock in option is an average strike option with a knock in barrier.

Average strike with knock out option

An average strike with knock out option is an average strike option with a knock out barrier.

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