DISCLAIMER: The definitions in this Glossary are for educational purposes only. They do not replace in any way the definitions used in local and global self-regulatory and regulatory codes and standards. The definitions in this Glossary do not in any way constitute advice. In no event shall Assure Hedge be liable for losses or damages arising from the use of information presented in this Glossary. We make every effort to ensure, but do not guarantee, the accuracy of the information in this Glossary. Information may contain technical inaccuracies or typographical errors. All content and information in this Glossary can be changed or updated without notice. If you find any inaccuracies or omissions in this Glossary, please let us know.

Derivative

Never miss out news

Subscribe to get new hedging insights straight to your mailbox.

By registering, I agree to the Privacy Policy and allow ALT21 to process my information
and send me any other information about its products, services and news.

Discover other concepts in our
currency hedging glossary

Base currency

The base currency is the first currency shown in a foreign exchange quotation. The second currency in the quotation is called the quote currency, or counter currency.

Read more

Warrant

A warrant is a type of derivative : a financial instrument that gets its value from an underlying commodity. In foreign exchange transactions, the underlying commodity is a currency pair.

Read more

Knock-in Option

A knock-in option is an option that only comes into force — or knocks in — if the underlying asset reaches a certain price. In foreign exchange, the underlying asset is an exchange rate.

Read more