Floor Definition Finance

2 a guaranteed lowest level for an interest rate.

Floor definition finance. Caps and floors can be used to hedgeagainst interest rate fluctuations. A public space for. Interest rate floors are utilized in. Legal definition of floor 1 a.

1 the lowest acceptable limit by controlling parties. A main level space as in a stock exchange or legislative chamber distinguished from a platform or gallery b. There are several meanings for a floor in finance. What is an interest rate floor.

Also the price at which a stop order is activated when the price drops low enough to activate such an order. The flat surface of a room on which you walk. 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. In context of interest rates a level which an interest rate or currency is structured not to go below.

A level of a building. Members of an assembly took questions from the floor. Floor the area of a stock exchange where active trading occurs. An interest rate floor is an agreed upon rate in the lower range of rates associated with a floating rate loan product.

Also the price at which a stop order is activated when the price drops low enough to activate such an order.