Fixing

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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 legitimate setting of any market price or rate, for a standard period, often a day.

"Deutsche Bundesbank ensures liquidity of [German] government securities by making a market at the exchange... At the stock exchange, there is a regular price fixing per day for less liquid bond issues and continuous trading for more liquid issues."
The Treasurer's Wiki, Germany


3.

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


4.

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.


5.

Price fixing is an agreement or collusion to manipulate a market for the advantage of those participating in the agreement, usually harming other market participants.

This is illegal in almost all jurisdictions and markets.


See also