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Floor - Financial definition

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Translations:      FR  floor (n.m.) , plancher sur taux d'intérêt (n.m.)     ES  piso de tasa de interés (n.m.)     DE  Zinsfloor (n.m.) 

Concise definition of the term floor

An interest rate floor is composed of a series of interest rate options which pay out if rates fall below the floor level (strike).

Comprehensive definition of the term floor

A floor can be used to guarantee a minimum return on floating rate investments (whilst still taking advantage of higher rates should they occur).

Additional information related to this definition

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