An OTC bilateral contract between two parties to exchange periodic coupon payments in two different currencies over a period of time. The principle amounts are mostly exchanged initially and at maturity at prevailing market exchange rate.
A contract whereby two parties exchange cash flows calculated based on fixed rate price and cash flow calculated based on floating rate price of particular commodity underlying. The transaction is in cash-settlement basis calculated from the difference between fixed rate price and floating rate price.
Settlement Rate Calculation. Find a branch.
Contact us. Ask more. Call Center 02 Follow us. Log In Trade Now.
My account. Learn to trade Glossary Stub. Share Article. Try Capital. What is a stub? Where have you heard about a stub?
What you need to know about a stub. Read our guide to trading forex Learn. Latest video. Related articles.
Sign up below
Whenever you buy or sell a bond, the period between the trade date and the next coupon date is known as the stub period. The interest payable on the stub is calculated pro-rata. Some bonds have a first or last coupon period that is shorter than the standard coupon period: this is known as a stub period.
- full house furniture deals!
- coupons school supplies printable.
- Market Data & Analysis.
- Select a Web Site.
- ACI OPERATIONS CERTIFICATE.
This will occur when you buy or sell a bond on a date that is in the middle of a regular coupon period. The amount paid on the stub coupon period will be lower than than the standard coupon, depending on the length of time between the purchase or sale date and the next coupon date.
Cleared OTC Interest Rate Swaps
View all articles. Mobile Apps Web Platform Investmate. Indices Forex Commodities Cryptocurrencies. For traders. News and features Trade Brexit Capital. Account types Professional clients Institutional Economic calendar.