Accumulator ratio
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An accumulator ratio allows you to benefit from an improved rate that is much better than the benchmark forward rate, provided that the spot rate is above the knock-out barrier. However, you may be obligated to buy an amount higher than the notional amount (at improved rate and within the limit of the defined ratio) if the spot rate at expiry is above the improved rate. The principle is to define before booking the contract, a schedule of daily or weekly fixings over a given period. The notional amount of the contract is then divided by the number of fixings to obtain the accumulated amount by fixing. At each observation, we will therefore compare the spot rate to the knock-out barrier rate to determine the accumulated amount. On a monthly basis or when the contract expires, you must buy the amount accumulated over the period. Please note that this strategy does not offer a guaranteed protection price and you remain fully exposed to adverse exchange rate fluctuations.
Complexity level : 
Catégorie : 5 *
Guarenteed protection rate : No
Protection rate level against benchmark forward rate :
N/A
Amount dealt at expiry :
Potentially higher than the notional amount
In what market to use it ?
Participation in a favorable move in spot : No