Derivatives

Single-Name CDS Option

August 13, 2021
Derivatives

PAUG Cap

August 13, 2021

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The practice whereby a dealer positions a part of a customer block order in a proprietary account to use its balance as risk-free principal. In this sense, the customer passes on some of the risk of slippage to the dealer, and in return enables the dealer to attain a risk-free commission on the balance.

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