Fixing instrument: Difference between revisions
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A fixing instrument - or fixing derivative - is one which hedges an exposure to a variable market rate or market price by effectively fixing a hedged market rate for it. | A fixing instrument - or fixing derivative - is one which hedges an exposure to a variable market rate or market price by effectively fixing a hedged market rate for it. | ||
Revision as of 11:45, 5 March 2017
Risk management
A fixing instrument - or fixing derivative - is one which hedges an exposure to a variable market rate or market price by effectively fixing a hedged market rate for it.
Examples include forward contracts, futures contracts, FRAs and swaps.
Contrasted with insurance-type instruments, such as an options.
