Floor Definition Finance

An interest rate floor is an agreed upon rate in the lower range of rates associated with a floating rate loan product.

Floor definition finance.

In context of interest rates a level which an interest rate or currency is structured not to go below. In context of interest rates a level which an interest rate or currency is structured not to go below. Floor the area of a stock exchange where active trading occurs. Also the price at which a stop order is activated when the price drops low enough to activate such an order.

1 the lowest acceptable limit by controlling parties. What is an interest rate floor. Floor the area of a stock exchange where active trading occurs. There are several meanings for a floor in finance.

A floor may refer to. 2 a guaranteed lowest level for an interest rate. Also the price at which a stop order is activated when the price drops low enough to activate such an order. Members of an assembly took questions from the floor.

Interest rate floors are utilized in. Caps and floors can be used to hedgeagainst interest rate fluctuations. A main level space as in a stock exchange or legislative chamber distinguished from a platform or gallery b. A public space for.

Similarly an interest rate flooris a derivative contract in which the buyer receives payments at the end of each period in which the interest rate is below the agreed strike price.