Derivatives · glossary
One contract, signed before any trade, that governs every trade between the same two parties. Each trade is added by a short Confirmation. Because everything is one agreement, all the trades can be ended and netted to one sum. The training document · Chapter 1 · Chapter 4
Explained in Chapter 1, What a Derivative Is, of Derivatives.
A trade is agreed in a few minutes on a recorded phone call: a rate, a notional, done. Nobody can negotiate a full contract that fast, so the market splits the paper in two. Each trade's own rates, amounts and dates go in a short Confirmation. Everything that should hold for every trade goes once into a master agreement, signed before the first trade.Read Chapter 1, What a Derivative Is →
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