A type of repo (repurchase agreement) that has no fixed maturity date. In effect, the transaction can be terminated “on demand” by either party on any business day in the future, subject to serving a notice within an agreed period. As long as the repo has not been terminated, it automatically rolls over day-to-day. Interest on repo loan accrues daily but is not compounded day-to-day. In other words, interest is not earned, each day, on interest earned and accrued over previous days. For extended periods over which a repo has still been in effect, accumulated interest is usually paid off in aggregate every month.

With everything else held constant, the initial repo rate on a terminable on demand repo is slightly lower than the overnight repo rate (considering the lower operational cost). The repo rate on an on-demand repo is fixed and will remain fixed over the lifespan of the transaction, unless the parties agree to revisit the rate (through a resetting mechanism) or it is linked to an interest rate index (automatic update).

An on demand repo is also known as an open repo, an open-ended repo, and an open-maturity repo.