Floor Definition Finance

A floor may refer to.

Floor definition finance.

In context of interest rates a level which an interest rate or currency is structured not to go below. An interest rate floor is an agreed upon rate in the lower range of rates associated with a floating rate loan product. A level of a building. In context of interest rates a level which an interest rate or currency is structured not to go below.

Interest rate floors are utilized in. Members of an assembly took questions from the floor. The flat surface of a room on which you walk. A public space for.

Caps and floors can be used to hedgeagainst interest rate fluctuations. 1 the lowest acceptable limit by controlling parties. What is an interest rate floor. 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.

Legal definition of floor 1 a. Also the price at which a stop order is activated when the price drops low enough to activate such an order. There are several meanings for a floor in finance. A main level space as in a stock exchange or legislative chamber distinguished from a platform or gallery b.

2 a guaranteed lowest level for an interest rate.