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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