Fixing instrument: Difference between revisions
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imported>Doug Williamson m (Spacing 27/8/13) |
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''Risk management''. | ''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. | 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. | ||
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Contrasted with insurance-type instruments, such as an options. | Contrasted with insurance-type instruments, such as an options. | ||
== See also == | == See also == | ||
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* [[Option]] | * [[Option]] | ||
* [[Swap]] | * [[Swap]] | ||
Revision as of 13:58, 27 August 2013
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.
