Forward ratio

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A forward ratio allows you to secure a better protection rate than the benchmark forward rate. However, you may be obligated to buy an amount higher than the notional amount (at protection rate and within the limit of the defined ratio) if the spot rate at expiry is above the protection rate.


Complexity level : Logo complexité

:

Catégorie : 3 *


Guarenteed protection rate :


Protection rate level against benchmark forward rate :
Better


Amount dealt at expiry :
Potentially higher than the notional amount


In what market to use it ? Logo marché baissier Logo marché neutre


Participation in a favorable move in spot : No