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Banking

Forward Hedge

A hedge that involves the use of foreign exchange forwards (FX forwards). It consists of an outright purchase of a...

Forward Starting Barrier Option

A partial time barrier option where the monitoring period starts at some time into the option's lifespan and ends at...

Forward Spreadlock

A spreadlock that is based on a forward contract. It allows the holder to lock in a specific number of...

Forward Cap

An interest rate cap that has a forward start date. In other words, the cap comes into effect at some...

FBDS

It stands for forward-starting basket default swap; a forward contract which obliges the holder to buy or sell a basket...

Forward-Starting Basket Default Swap

A forward contract which obliges the holder to buy or sell a basket default swap (BDS) at a specified time...

Forward-Starting Interest Rate Swap

An interest rate swap that involves the future exchange of two series of cash flows. This swap allows hedgers to...

Floating Rate Note

Also a floater. It is a note bearing a variable interest rate which is usually readjusted every six months. This...

Floating-Strike Asian Option

An option (Asian option) whose payoff depends on the average price of the underlying asset during the life of the...

FRN

It stands for floating rate note. It is a note bearing a variable interest rate which is usually readjusted every...