Ratio bonus forward
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A ratio bonus forward allows you to secure a protection rate (slightly better than the benchmark forward rate), while allowing you to benefit from an improved rate in case of an unfavourable move in the spot rate at expiry, in the limit of the improving low barrier. 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 : 
Catégorie : 3 *
Guarenteed protection rate : 
Protection rate level against benchmark forward rate :
Slightly better
Amount dealt at expiry :
Potentially higher than the notional amount
In what market to use it ?
Participation in a favorable move in spot : No