Derivative instrument and Dynamic discounting: Difference between pages

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''Risk management - hedging''.
A form of early payment discounting in which the amount of the discount (for early payment) is determined by a negotiation or auction.  


A derivative instrument or contract is one whose value and other characteristics are derived from those of another asset or instrument (sometimes known as the Underlying Asset).
Dynamic discounting is usually facilitated by an intermediary.  


Derivative instruments are widely used by non-financial corporates for hedging purposes.


 
==See also==
<span style="color:#4B0082">'''Example'''</span>
*[[Factoring]]
 
*[[Invoice discounting]]
A share option is a type of derivative contract, allowing the holder to buy shares at a certain predetermined strike price.
*[[Supply chain finance]]
 
The value of the share option derives from the current price of the related underlying share relative to the option strike price.
 
 
== See also ==
* [[CCR]]
* [[Collateral]]
* [[Commodity risk]]
* [[CP]]
* [[Credit support annex]]
* [[Embedded derivative]]
* [[ETD]]
* [[FC]]
* [[Fixing instrument]]
* [[Forward rate agreement]]
* [[FVTOCI]]
* [[FVTPL]]
* [[Hedge fund]]
* [[Hedging]]
* [[Interest rate swap]]
* [[IR]]
* [[ISDA Master Agreement]]
* [[Margining]]
* [[Mark to market]]
* [[Maturity]]
* [[Notional principal]]
* [[Option]]
* [[Outright]]
* [[Potential Future Exposure]]
* [[Replacement cost]]
* [[Risk management]]
* [[Strike price]]
* [[Tracker fund]]
* [[Transfer]]
* [[Underlying]]
* [[Underlying asset]]
* [[Underlying price]]
* [[XVA]]
 
 
===Other links===
*[http://www.treasurers.org/node/8599  Masterclass: Derivatives, ''Sarah Boyce,'' The Treasurer]
 
[[Category:Manage_risks]]

Revision as of 08:38, 26 September 2015

A form of early payment discounting in which the amount of the discount (for early payment) is determined by a negotiation or auction.

Dynamic discounting is usually facilitated by an intermediary.


See also