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Usufruct

In simple terms, it is the right of an individual to use something that belongs to someone else, whether for…

Usury

In general, usury refers to the predetermined interest which a lender charges on, and collects from, a borrower. The lender…

Long Index Call

A long call option on an index where a trader can profit from a rise in the price of the…

Long Diagonal Put Spread

A diagonal put spread that involves the selling of a given amount (one or more) of near-month out-of-the-money put options and…

Risk-Free Rate

The rate of interest which can be earned without bearing any risks. The rates on Treasury bills and Treasury bonds…

Roll Up and Out

An option-related strategy that is based on the replacement of a position by closing out one option with a near-month…

Reportable Positions

The number of open contracts at which a market supervisory authority (like the CFTC in the US) specifies when an…

Tranche Coupon Leg

One of the two legs of a tranche (vanilla tranche/ plain vanilla tranche), with the other one being a tranche…

Funding Rate

It has many meanings in multiple contexts. Generally, it is the interest rate that is charged over a funding interval,...

Near Perfect Floater

A floater that is embedded with caps or collars (caps and floors) so that the floating rate movement (adjustment) is…