Interest rate option – IRC and IRF trades

Hedge against any decreases or increases

  • hedging against interest rate volatility
  • in major global and regional currencies

IRC and IRF trade

  • There are two types of interest rate options:
    • Interest rate Cap (Call) – used for hedging against the rate increase
    • Interest rate Floor (Put) – used when the rate decreases
  • By a combination of both, you can create an interest rate Collar, zero-cost structure, by which you will be secured against extreme increases or decreases in the rates
  • To conclude the trade you will need:
    • Minimum funds volume of €25,000.00
    • Signed contractual documentation

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