American Option
An option style that lets the holder exercise at any time before expiration, unlike a European option.
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An option style that lets the holder exercise at any time before expiration, unlike a European option.
Asian options base payoff on the average price of the underlying asset over a stated observation period.
An asset swap combines a bond position with a swap to transform fixed or credit-sensitive cash flows into floating-rate exposure.
A barrier option is an option whose payoff or existence depends on whether the underlying asset reaches a specified barrier level.
Futures basis, delivery month, convenience yield, contango, backwardation, and wide-basis mechanics.
A bear call spread sells a lower-strike call and buys a higher-strike call to express limited-risk bearish or neutral option exposure.
A bear put spread buys a higher-strike put and sells a lower-strike put to seek limited-risk downside exposure.
A bear spread is an options spread designed to profit from a decline in the underlying while limiting both risk and reward.
An option style that permits exercise only on specified dates before expiration, sitting between American and European exercise.
A bespoke CDO is a customized structured credit transaction built around investor-selected reference assets, tranche terms, and risk exposures.
Option contract with an all-or-nothing payoff based on whether a specified market condition is satisfied.
Tree-based option valuation model that prices contracts by working backward through possible up and down price paths.
The Black-Scholes equation is the option-pricing framework used to value European-style options under specified assumptions.
Closed-form model for estimating European option value from price, strike, time, volatility, rates, and dividends.
A bond default swap transfers credit risk on a bond issuer or obligation, functioning as protection against a defined credit event.
Bond futures are standardized contracts used to hedge or trade future changes in bond prices and interest rates.
Bond options give the holder option exposure to a bond or bond-related instrument, often used for rate views or fixed-income hedging.
A bull call spread buys a lower-strike call and sells a higher-strike call to seek limited-risk upside exposure.
Bull Put Spread is a financial instrument concept used in contract analysis, payoff profiles, pricing, or risk transfer.
An option right to buy an underlying asset at a specified exercise price before or at expiration.
Option contract giving the buyer the right to purchase an asset at a fixed strike price before expiration.
Cash-and-carry arbitrage buys a spot asset and sells a futures or forward contract when the futures price exceeds full carry cost.
CDX or Credit Default Swap Index is a financial instrument that provides diversified risk and broad market exposure, and is standardized and traded in the derivative market.
Designated contract market within CME Group for futures and options on major financial and commodity benchmarks.
A collar options strategy combines a protective put with a covered call to limit both downside risk and upside participation.
A collateralized debt obligation pools debt exposures into tranches with different credit risk, priority, and return profiles.
CME Group designated contract market best known for metals futures and options, including precious, base, and ferrous metals.
Agreement that defines commodity quantity, grade, price, timing, delivery, and settlement obligations.
Exchange-traded futures contracts on agricultural, energy, metal, livestock, and other commodity markets.
Standardized exchange-traded contract for future commodity delivery or cash settlement under specified contract terms.
Commodity spot markets, benchmark contracts, standardized grades, and stock-market exposure to physical commodities.
Commodity trading advisor is a regulated futures and derivatives advisory role for commodity-interest trading advice.
Contango is a futures curve condition where longer-dated futures prices trade above the current spot price.
Futures-curve conditions where later contract prices trade above or below nearby prices or spot value.
A contract for differences is a leveraged derivative that settles price changes in an underlying asset without physical ownership.
Futures-market price limits, delivery alternatives, regulated contracts, benchmark fixation, and settlement mechanics.
Implied benefit of holding a physical commodity instead of only holding a futures or forward contract.
Convertible arbitrage compares a convertible security with the issuer's stock, credit risk, volatility, and hedge cost.
Cost of carry is the financing, storage, income, and convenience-yield effect that links spot and futures prices.
A covered option is an options position backed by ownership or offsetting exposure in the underlying asset.
A credit default option gives option-like exposure to a credit event or credit spread move rather than continuous swap protection.
A credit default swap transfers default risk through premium payments and protection payments tied to defined credit events.
A credit derivative transfers or prices credit risk without requiring direct ownership of the underlying debt instrument.
Credit Event is a financial instrument concept used in contract analysis, payoff profiles, pricing, or risk transfer.
A credit-linked note combines a debt security with embedded credit exposure to a reference borrower, index, or portfolio.
A cross-currency swap exchanges interest payments, and often principal, in two currencies to manage funding or currency exposure.
A crown jewel option is a takeover defense involving rights or arrangements tied to a company's most valuable assets.
Currency Futures is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.
A currency option gives the holder the right to buy or sell one currency for another at a specified exchange rate.
A currency swap exchanges cash flows in different currencies, helping borrowers or investors manage exchange-rate and funding exposure.
A debit spread is an option spread opened for a net premium paid, with defined risk and limited payoff potential.
Embedded flexibility in futures or deliverable contracts over delivery timing, eligible instrument, location, quality, or quantity.
Delta Hedging is a financial instrument concept used in contract analysis, payoff profiles, pricing, or risk transfer.
Delta in derivatives trading measures how much an option or derivative price changes when the underlying price changes.
A delta neutral strategy balances positive and negative delta exposures so the position is less sensitive to small underlying price moves.
A derivative is a financial contract whose value is linked to an underlying asset, rate, index, event, or benchmark.
A derivative instrument is a security or contract whose payoff depends on an underlying asset, price, rate, index, or credit event.
General derivative instrument, equity-linked, asset-swap, weather derivative, and contract-structure terms.
Derivative notional, underlying asset, hedge-ratio, hedging transaction, and exposure-transfer terms.
Derivative securities are tradable instruments whose value is derived from an underlying asset, index, rate, commodity, or credit exposure.
Financial-instrument terms for options, futures, forwards, swaps, credit derivatives, underlyings, and payoff structures.
Market-venue terms for futures, options, swaps, commodity exchanges, and derivatives clearing or execution platforms.
Digital options pay a fixed amount if a specified condition is met and usually pay nothing if it is not met.
A dividend warrant is a payment instrument or notice used to distribute declared dividends to shareholders.
A down-and-in option becomes active only if the underlying asset falls to or below a specified barrier before expiration.
A down-and-out option terminates if the underlying asset falls to or below a specified barrier before expiration.
E-Mini Futures is a financial instrument concept used in contract analysis, payoff profiles, pricing, or risk transfer.
The decision to exercise an option before expiration, most relevant for American-style options and dividend-sensitive positions.
An equity derivative is a contract whose payoff depends on a stock, equity index, basket, or other equity-linked exposure.
An equity option is a call or put whose underlying is a stock, equity index, ETF, or other equity-linked security.
An equity swap exchanges equity-index, stock, or portfolio returns for another cash-flow leg without transferring direct ownership.
An equity-linked note combines debt-like principal terms with a payoff tied to a stock, index, basket, or equity option strategy.
An equity-linked security gives investors debt or preferred-like exposure with returns tied to an underlying equity security or index.
An option style that can be exercised only at expiration, making exercise timing fixed rather than continuous.
Privately negotiated transaction exchanging a futures position for an equivalent physical or cash-market position.
A standardized derivative contract traded on an exchange and cleared through central market infrastructure.
Standardized option contracts traded on regulated exchanges with clearinghouse settlement and published contract terms.
Options that can currently be exercised because vesting, timing, and contract conditions have been satisfied.
The action of using an option right to buy or sell the underlying asset at the contract exercise price.
The period during which an option holder can exercise the contract under its stated terms.
The contract price at which the option holder may buy or sell the underlying asset when exercising.
An exotic option has nonstandard payoff, exercise, barrier, averaging, or path-dependent features beyond plain vanilla calls and puts.
The last date on which a derivative or option contract can be exercised before it becomes void.
A financial future is an exchange-traded futures contract based on a financial asset, rate, index, or currency rather than a physical commodity.
A financial hedge uses derivatives, securities, or offsetting exposures to reduce price, rate, currency, or credit risk.
Maximum permitted price movement for a futures contract during a trading session under exchange rules.
A foreign exchange swap combines a spot currency exchange with a forward reversal, often for liquidity, funding, or FX hedging.
Forwards and futures are contracts for future delivery or settlement, with forwards customized over the counter and futures standardized on exchanges.
A forward contract is a customized OTC agreement to buy or sell an asset, rate, or currency at a set future date and price.
A forward exchange contract locks in a future currency exchange rate, helping businesses hedge foreign-exchange cash flows.
A forward exchange rate is the agreed rate for exchanging currencies on a future settlement date.
Forward Forward Rate is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.
Forward Margin, also referred to as Forward Points, represents the difference between the spot rate and the forward rate in foreign exchange trading.
A forward premium occurs when a currency's forward exchange rate is higher than its spot rate.
A forward-rate agreement is an OTC contract that locks in an interest rate for a future borrowing or lending period.
A future contract is a standardized exchange-traded agreement to buy or sell an underlying asset at a specified future date and price.
A futures chain lists available contracts for an underlying asset across expirations, prices, volumes, and other trading terms.
Futures commission merchant is the regulated intermediary that accepts futures orders and customer funds for margining trades.
Commodity futures, futures prices, futures-implied rates, outright positions, and exchange-traded futures mechanics.
Futures contracts, futures prices, basis, delivery months, contango, backwardation, and convenience-yield mechanics.
Futures exchanges, designated contract markets, intermediaries, open-outcry history, and commodity-market venue terms.
Commodity trading advisors, futures commission merchants, and open-outcry trading-floor terms in futures markets.
A futures option gives the holder the right, but not the obligation, to enter a futures contract at a specified price.
Quoted price of a futures contract and the market input used to value, hedge, or settle future exposure.
Market-implied rate derived from an interest-rate futures contract or another futures quote tied to a rate.
Exchange-traded futures position mechanics, including margin, mark-to-market settlement, hedging, speculation, and contract risk.
A futures transaction is a trade in a standardized futures contract used to hedge, speculate, or adjust market exposure.
Gamma measures how quickly an option's delta changes as the underlying price moves.
Non-U.S. futures and commodity exchange terms used in derivatives, commodity, and market-structure analysis.
Gold futures are standardized contracts to buy or sell gold at a future date and price, used for hedging and speculation.
A gold option gives option exposure to gold prices, usually through futures, exchange contracts, or other gold-linked underlyings.
Greeks in finance are sensitivity measures that show how option values respond to changes in price, time, volatility, and rates.
A harmless warrant requires surrendering a similar bond or instrument when exercising the warrant to buy another fixed-income security.
The Heath-Jarrow-Morton model describes forward-rate dynamics used to value interest-rate-sensitive securities and manage term-structure risk.
A hedge or hedging strategy offsets an exposure so gains in one position can reduce losses in another.
A hedge ratio measures the size of a hedging position relative to the exposure it is intended to offset.
A hedging transaction is a trade entered to reduce risk from an existing or expected exposure rather than to seek standalone profit.
The Heston model prices options using stochastic volatility, allowing volatility to vary over time rather than stay constant.
The Hull-White model is an interest-rate model used to price bonds, swaps, swaptions, and other rate derivatives.
Implied volatility is the volatility level embedded in option prices and reflects the move size the market is pricing.
An option moneyness state where immediate exercise would produce positive intrinsic value.
An index CDS references a basket of credit names, letting traders hedge or take exposure to broad credit spreads.
Index futures are financial derivatives that allow investors to speculate on or hedge against the future value of a stock market index.
An index option is an option whose payoff is based on the level of a stock, bond, volatility, or other financial index.
An inflation swap transfers inflation risk by exchanging fixed payments for payments linked to an inflation index.
An interest-rate call option gains value when the referenced rate rises above the strike, creating asymmetric protection or upside.
An interest rate future is a standardized contract used to hedge or speculate on movements in interest rates or rate-linked instruments.
An interest-rate option gives asymmetric exposure to movements in a reference rate, cap, floor, swap rate, or rate-linked instrument.
An interest rate swap exchanges fixed-rate and floating-rate cash flows, usually to manage borrowing, asset, or yield-curve exposure.
An interest-rate derivative is a contract whose value depends on rates, yield curves, or rate indexes, often used for hedging or speculation.
ISDA is the derivatives industry association behind standard documentation, legal frameworks, and market-practice guidance for swaps.
A knock-in option starts inactive and becomes effective only after the underlying asset reaches a specified barrier.
Barrier option that terminates if the underlying asset reaches a specified level before expiration.
Lambda in options trading measures percentage option price sensitivity to a percentage move in the underlying asset.
Lattice models price derivatives by stepping through a discrete tree of possible future prices or rates.
A Loan Credit Default Swap (LCDS) is a financial derivative that allows parties to hedge or speculate on the risk of default in syndicated loan markets.
Long-dated listed options, usually with expirations beyond one year, used for leveraged exposure or long-horizon hedging.
A leg is one component trade within a multi-part derivatives strategy such as a spread, collar, straddle, or swap package.
Legging-In is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.
LIFFE was a London derivatives exchange for financial futures and options before becoming part of larger exchange infrastructure.
Downside futures or securities-market trading curb reached when price falls to an exchange-defined lower limit.
Upper and lower trading bands that restrict futures prices once exchange-defined daily price limits are reached.
An exchange-traded option contract with standardized terms, exchange rules, and clearinghouse processing.
A lock-up option gives a friendly bidder rights to buy key target assets or shares, making a hostile takeover harder to complete.
Long Call is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.
A long hedge uses a long futures, forward, or options position to protect against a future price increase in an asset or input.
A long jelly roll is an options strategy that exploits differences in time value across expirations using offsetting synthetic positions.
A long put gives the holder downside exposure or protection by gaining value when the underlying price falls below the strike.
Long Strangle is a financial instrument concept used in contract analysis, payoff profiles, pricing, or risk transfer.
A lookback option uses the best or worst observed underlying price during the option life to determine payoff.
A European-style option with a very low strike price, often used to create equity-like exposure with option settlement mechanics.
Managed futures are professionally managed strategies that trade futures and forwards across asset classes for diversification and trend exposure.
Informal market shorthand that usually refers to the Chicago Mercantile Exchange or the broader CME futures marketplace.
Involves selling a call option without owning the underlying asset, leading to potentially unlimited risks.
Short call strategy written without owning the underlying asset, creating limited premium income and theoretically unlimited upside loss.
Option written without owning the underlying asset or a fully offsetting hedge, creating large assignment and margin risk.
Short put strategy written without a full hedge or cash-secured plan, creating premium income and downside purchase risk.
National Commodity and Derivatives Exchange is an Indian commodity derivatives exchange used for agricultural commodity price discovery and hedging.
Historical cotton futures exchange name now mainly relevant to ICE Futures U.S. cotton-market history and contract lineage.
Full-name reference for NYMEX, the CME Group designated contract market associated with energy and commodity futures.
A non-deliverable swap settles net cash differences without exchanging the restricted or reference currency itself.
Option trading where payoff and risk change nonlinearly with the underlying price, volatility, and time decay.
Notional principal amount is the reference size used to calculate derivative cash flows, even when principal is not exchanged.
Notional value is the reference amount used to calculate derivative payments, exposure, and leverage without necessarily changing hands.
New York Mercantile Exchange, a CME Group designated contract market associated with energy and commodity futures.
OEX S&P 100 Index options are listed index options tied to the S&P 100, used for large-cap equity exposure and hedging.
Omega, also called option elasticity or lambda, compares percentage option value change with percentage underlying price change.
Path-dependent option that pays a fixed amount if the underlying touches a specified level before expiration.
Open outcry is the trading-floor method of communicating bids, offers, and trades through voice and hand signals.
A derivative contract giving the holder a right, but not an obligation, to buy or sell an underlying asset under stated terms.
A contract granting a right, but not an obligation, to buy or sell a specified asset under agreed terms.
An option chain lists available contracts for an underlying security across strikes, expirations, prices, volume, and implied volatility.
An option class groups option contracts with the same underlying security and type, separating calls from puts.
A contract that gives the buyer the right to buy or sell an underlying asset at a set price within a defined period.
The buyer of an option contract who holds the right, but not the obligation, to exercise, sell, or let the option expire.
Option margin is collateral required to support option positions, especially short or uncovered strategies with contingent obligations.
Option premium is the price paid for an option contract, reflecting intrinsic value, time value, volatility, rates, and strike terms.
Option Price is a financial instrument concept used in contract analysis, payoff profiles, pricing, or risk transfer.
Models that estimate option value from payoff terms, volatility, time, rates, dividends, and underlying price behavior.
Theory explaining how no-arbitrage, payoff structure, volatility, time, rates, and hedging determine option value.
Derivative pricing, option Greeks, volatility surface, time decay, and option-model terms.
The seller of an option contract who receives premium and assumes the obligation if the holder exercises.
Strategies that sell option premium while managing assignment, volatility, margin, and payoff risk.
An optionable stock is an equity security with listed options available for trading on a recognized options exchange.
Disclosure document for standardized listed options, covering contract features, investor risks, exercise, settlement, and broker-delivery obligations.
OCC-supported options education resource for learning listed-options risks, strategies, market data, and contract mechanics.
Marketplace for listed and OTC option contracts, where buyers and writers trade option rights, premiums, volatility exposure, and hedging strategies.
Options-market disclosure, education, and market-rule terms used around listed options trading.
OPRA consolidates and disseminates listed U.S. options quotation and trade data from participating exchanges.
The buying and selling of option contracts to hedge risk, speculate on price movement, or structure payoff exposure.
Options vs. Futures is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.
Customized options negotiated off exchange, where documentation, valuation, collateral, liquidity, and counterparty risk are central.
An option moneyness state where immediate exercise would not produce intrinsic value.
Single long or short futures exposure taken without pairing it with a spread, hedge, or offsetting futures leg.
A single option position held or traded by itself rather than as part of a spread, straddle, or other multi-leg strategy.
An overnight index swap exchanges a fixed rate for compounded overnight benchmark rates over the swap term.
Path-dependent options determine payoff from the underlying asset's price path over time, not only the final price at expiration.
Premium income is cash received for writing options, selling insurance-like protection, or otherwise accepting contingent risk.
Protective Put is a financial instrument concept used in contract analysis, payoff profiles, pricing, or risk transfer.
Protective Put vs. Covered Call is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.
Option contract giving the buyer the right to sell an asset at a fixed strike price before expiration.
Quadruple witching is a market date when several equity-index futures, stock-index options, stock options, and single-stock futures expire together.
A quantity-adjusting option adjusts exposure or payoff quantity based on contract terms, underlying movement, or currency-linked features.
A quanto swap links payoff exposure to one market while settling in another currency, separating asset exposure from currency settlement.
A real option is managerial flexibility to expand, delay, abandon, or change a project as uncertainty resolves.
Redemption and call options both involve early termination rights, but differ in issuer, investor, and contract mechanics.
U.S. tax and futures-market term for a futures contract marked to market and traded on or subject to a qualified board or exchange.
Rho hedging manages option portfolio sensitivity to changes in interest rates.
Rho estimates how much an option's theoretical value changes when interest rates change.
Risk bearing is accepting exposure to uncertain outcomes such as price moves, credit losses, rates, or volatility in exchange for expected compensation.
No-arbitrage method that prices derivatives by discounting expected payoffs under risk-neutral probabilities.
Roll Forward in Derivatives is a financial instrument concept used in contract analysis, payoff profiles, pricing, or risk transfer.
Roll yield is the gain or loss from replacing an expiring futures contract with a later-dated contract on the futures curve.
Index options on the S&P 500 used for broad-market hedging, income, speculation, and volatility exposure.
A share warrant gives the holder the right to buy company shares at a specified price under stated terms.
A short call strategy sells a call option and collects premium while taking the risk of losses if the underlying rises.
A short put collects option premium while taking the obligation to buy the underlying if assigned below the strike price.
A single-name CDS is a credit default swap referencing one borrower or issuer rather than an index or basket.
Nearest futures delivery month in which the contract can move toward delivery or final cash settlement.
Spot price is the current market price for immediate purchase or sale of an asset, commodity, currency, or security.
A stock index future is a standardized contract whose payoff follows an equity index and is used for hedging, beta exposure, or speculation.
A stock returns note is a structured note whose payoff is linked to the performance of one or more underlying stocks.
Strangle is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.
CDO, CDX, loan credit-default swap, single-name CDS, and synthetic credit-product terms.
A swap is a derivative contract in which counterparties exchange cash-flow exposures such as rates, currencies, credit, or returns.
A swap data repository collects and maintains swap transaction records for market transparency, reporting, and regulatory oversight.
Swap points are the forward points added to or subtracted from a spot FX rate to quote a forward or swap price.
A swap rate is the fixed rate that makes a swap's fixed and floating legs economically equivalent at inception.
A swaption gives the holder the right, but not the obligation, to enter a swap on specified terms.
A synthetic put combines a short underlying position with a long call to replicate the payoff of a long put.
Taking Delivery is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.
Theta measures the expected option value lost to time decay as expiration approaches, holding other inputs constant.
Theta Decay refers to the progressive reduction of the extrinsic value of an option as it nears its expiration date, impacting options pricing and trading strategies.
Theta hedging manages option time-decay exposure, usually by combining long and short options or dynamically adjusting a position.
Theta Neutral is a financial instrument concept used in contract analysis, payoff profiles, pricing, or risk transfer.
A total return swap transfers an asset's price return and income to one party while another receives a financing or reference-rate leg.
CME, COMEX, NYMEX, Merc, New York Cotton Exchange, and related U.S. futures venue terms.
An uncovered option is written without owning the underlying or an offsetting hedge, creating potentially large assignment or market risk.
An underlying is the asset, index, rate, measure, or obligation that determines a derivative contract's value.
Underlying debt is the bond, loan, or obligation supporting a derivative, guarantee, municipal issue, or related financing structure.
An underlying futures contract is the futures position delivered or referenced when a futures option is exercised or valued.
An up-and-in option becomes active only if the underlying asset rises to or above a specified barrier before expiration.
An up-and-out option terminates if the underlying asset rises to or above a specified barrier during the option term.
A standard call or put option with basic payoff terms and no exotic barriers, averaging, or path-dependent features.
A variable prepaid forward contract lets a shareholder receive cash upfront while agreeing to deliver shares or cash later based on stock performance.
Futures price-limit system that can expand, reset, or change based on exchange-defined market conditions.
A variable ratio write sells different numbers of call options against an underlying position to shape premium income and upside exposure.
A variance swap pays based on realized variance versus a fixed variance strike, isolating squared-volatility exposure.
Vega measures how sensitive an option's price is to changes in implied volatility.
A vega-neutral position seeks to reduce net sensitivity to changes in implied volatility.
A vertical spread combines options with the same expiration and different strikes to create defined-risk directional exposure.
VIX futures are contracts based on expected future volatility implied by the Cboe Volatility Index.
VIX options provide option exposure to expected equity-market volatility through contracts linked to the Cboe Volatility Index framework.
Volatility arbitrage trades differences between option-implied volatility and the volatility a trader expects the underlying to realize.
A volatility smile shows implied volatility varying by option strike, often revealing market pricing of tail risk and skew.
Volatility Surface is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.
A volatility swap pays based on realized volatility versus a fixed volatility strike, giving direct exposure to volatility levels.
Option volatility, Greek sensitivity, time decay, leverage, and sentiment measures used in options pricing and risk review.
A warrant gives the holder a contractual right to buy securities or claim specified goods under defined terms.
Warrant coverage measures the amount of warrants granted alongside financing, often expressed as a percentage of investment or debt issued.
Warrant premium is the extra amount paid for warrant exposure above the immediate intrinsic value of the underlying shares.
A weather derivative pays based on weather measures such as temperature, rainfall, or snowfall rather than traditional financial asset prices.
A weather future is an exchange-traded contract whose settlement is tied to a weather index such as temperature or heating degree days.
Weighted average rating factor is a portfolio credit-quality metric used in structured credit analysis and collateralized loan obligation monitoring.
Large difference between a cash-market price and the related futures price, often creating hedge or delivery risk.
A wild card option is a timing advantage in certain futures or bond delivery processes that can affect settlement value.
Writing an option means selling an option contract and receiving premium in exchange for taking assignment or payoff risk.
Zero Cost Collar is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.
A zero-basis risk swap is designed to minimize mismatch between related exposures that should otherwise offset each other.
A zero-coupon inflation swap exchanges a fixed inflation rate for realized inflation in a single settlement at maturity.
A zero-coupon swap concentrates one leg's payments into a lump-sum settlement instead of periodic swap cash flows.