Swaps Lastly, the most common OTC derivative instruments are swaps. As their name suggests, swaps involve an exchange. They often concern financial instruments, like currencies and interest rates, that represent a risk due to their variable nature. Swaps are agreements according to which one party ...
Counterparty (no counterparty required for exchange traded and centrally cleared options) Maturity date Notional amount Value Upfront payments/receipts Unrealized appreciation/depreciation Swaps on an index or basket If the notional amount of the underlying investment does not exceed 1% of the fund’s N...