Oct 172020

Where counterparties agree to pay or receive the difference between the forward interest rate agreed at the beginning of the contract and Libor at the end of the contract. Payments are made based on an agreed notional principal. Can be used for hedging loans or deposits. An example of a Contract for Differences.

More on banking and finance terms later this week, when I write my next post. Forward Rate Agreement. Please bookmark us and leave a comment.


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