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Proxy Hedge

A transaction that, as opposed to a direct hedge, involves hedging one commodity with a contract for a different commodity....

Dirty Hedge

A transaction that, as opposed to a direct hedge, involves hedging one commodity with a contract for a different commodity....

Dirty Hedge Instrument

A derivative instrument which cannot be perfectly hedged using available exchange-traded instruments. In other words, the risks associated with such...

OBS Instrument

It stands for off-balance sheet instrument; a contract which is mainly based on a notional principal amount and represents a...

Off-Balance Sheet Instrument

A contract which is mainly based on a notional principal amount and represents a contingent liability on an institution. It...

Basic Swap

Also a vanilla swap. It is a standard swap structure in which swaps have generic or well-defined features, especially in...

Par Value Swap

A vanilla swap which has a zero net present value. That is, it involves no initial exchange of notional principal....

Reset Swap

An interest rate swap in which the floating rate is set in arrears. This means, the floating rate is determined...

Banging The Close

A manipulative or disruptive trading practice whereby a trader buys or sells a large quantity of futures contracts during the...

Digital CDS

A binary credit default swap. Unlike standard credit default swaps (CDS) which require a valuation following a credit event (usually...