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Quanto Spread

The difference between the CDS quotes in one currency and another. This spread could trade as a standalone product. For example, a...

Synthetic Quanto Spread

A quanto spread that is constructed using two forward rates. It is mainly used to hedge quanto risk in the interdealer market. This spread can be...

Reverse Knockout Option

A knock-out option in which the barrier is triggered when the option gets in the money (ITM). The barrier level knocking the option out would...

RKO Option

It stands for reverse knock-out option; a knock-out option in which the barrier is triggered when the option gets in the money (ITM). The barrier level knocking...

Tunnel Option

An option-based strategy that is mostly used in currency (and interest rate) markets and involves the purchase of a foreign exchange...

Himalaya Option

An exotic equity option which is based, unlike vanilla options (which have only one underlying asset), on a number of underlying securities (basket). That makes...

ATMF

An abbreviation for at-the-money forward; the situation in which the strike of an option is set equal to the forward price (e.g., FX rate) for the same expiration...

At-The-Money Forward

The situation in which the strike of an option is set equal to the forward price (e.g., FX rate) for the same expiration date of the...

ATM Forward

An abbreviation for at-the-money forward; the situation in which the strike of an option is set equal to the forward price (e.g., FX rate) for the same expiration...

Put Leverage

An option leverage that measures the sensitivity of a put option’s price to changes in the underlying price. In other words, it is...