Fixing derivative: Difference between revisions

Revision as of 11:52, 5 March 2017

Risk management

A derivative which hedges an exposure to a variable market rate or market price by effectively fixing a hedged market price or rate for it.

Examples include forward contracts, futures contracts, FRAs and swaps.

Contrasted with insurance-type instruments, such as options.

Revision as of 11:47, 5 March 2017 (view source) imported>Doug Williamson (Create the page. Sources: linked pages.)		Revision as of 11:52, 5 March 2017 (view source) imported>Doug Williamson (Typo correction, delete surplus 'an'.) Newer edit →
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	Examples include forward contracts, futures contracts, FRAs and swaps.		Examples include forward contracts, futures contracts, FRAs and swaps.

	Contrasted with insurance-type instruments, such as an options.		Contrasted with insurance-type instruments, such as options.