Fixing

1. The setting of an interest rate for a predetermined future period. For example, the periodic re-setting of the interest rate on a floating rate loan.

2. The use of derivative instruments such as Fixed rate agreements (FRAs) for hedging purposes, to effectively fix a hedged rate.

3. A fixing instrument (or fixing derivative) is one which hedges an exposure by effectively fixing a hedged rate for it. Contrasted with an insurance-type instrument, such as an option.

See also

• Fixing instrument
• Forward rate agreement
• Option