Cliquet

This Issue in United States

Cliquet

Concept of Cliquet in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A structure of which the payoff can be likened to that of a series of consecutive forward starting options, the strike price of each being the settlement price of the previous. The profit from each period (being the strike price differential) can either be paid after each period, held to maturity and then paid, or manipulated in a more exotic fashion at maturity.

Resources

See Also

• Derivatives Contract