Fixing derivative

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 an options.

See also

• Derivative instrument
• Fixing
• Forward contract
• Forward rate agreement
• Futures contract
• Insurance
• Opportunity loss
• Option
• Swap