The lowest possible price limit set by market makers, regulatory bodies or controlling...
An option that pays an amount of interest on an agreed-upon amount of notional principal whenever the market index is below the floor's predetermined base.
The rate below which the interest rate of an adjustable rate mortgage may not decline.
Protects the seller from price falls below a certain level
An interest rate option which protects the holder from a decrease in interest rates. The holder, by exercising, receives a cash settlement representing the difference between the strike level and the underlying interest rate, should the latter be lower for the set period. Floors have a life of normally between two and five years. The option can be exercised at regular intervals (e.g. every 6 months) during the life of the floor. See Cap.
A contract on a short-term interest rate in which the writer of the floor pays the buyer the difference for any period prior to expiration when the rate is fixed at a level below the floor rate specified in the cap. Floor can also refer to the minimum interest rate on an adjustable-rate security or loan.
(1) The lowest rate a financial market is allowed to fall. (2) The trading floor of an exchange.
The lower limit for the interest rate on an adjustable-rate loan or security.
The lowest interest rate of an adjustable rate mortgage
a lower limit; "the government established a wage floor"
a financial contract giving the owner the right but not the obligation to lend a pre-set amount of money at a pre-set interest rate with a pre-set maturity date
The minimum coupon to which a floating rate security can reset over its life.
in CPPI, the amount below which the value of a portfolio is permitted to fall
This is the minimum possible rate on a line of credit or variable-rate loan, after the introductory rate period.
An option which fixes the minimum interest rate receivable on a deposit/loan for a series of interest payments.
Least amount an interest rate can be on a loan.
a contract that allows the purchaser to have a lower limit on the total rate of return of an asset.
The lowest possible rate that can be applied to a particular type of loan
the floor of an impact crater, usually bowl-shaped or flat, lying below the surrounding ground level.
Rate below which voted mills will not be reduced under the property tax reduction factor. Established by the General Assembly. Currently set at 20 mills.
In the interest rate derivatives market, an instrument in which the buyer receives payments from the seller in the event interest rates decline below a specified level; used by the buyer as a hedge against falling interest rates. In the bond market, the floor of a floating-rate security is its minimum possible interest rate. See " Cap"
A rate option strategy that allows its holder to set a floor or minimum interest rate for his floating rate deposits over a period of time. A floor is analogous to a series of put options on interest rates protecting the buyer from interest rates falling below a specific level.
The minium interest rate that can be credited to your policy equity index annuity in a year or over the term of your contract.
On an adjustable rate mortgage (ARM), the minimum interest rate the loan could reach over the adjustment periods.
Is the lower limit price or interest rate.
The lowest rate that can be charged on an adjustable rate loan.
In dynamic ratchet management, the level below which the value may not fall.
minimum interest rate payable on an adjustable-rate mortgage.
See: INTEREST RATE FLOOR.
The place where the auction sale occurs. Also a term used for the lowest price a seller is willing to part with his or her property.
The lowest an adjustable-rate mortgage rate can ever be during the life of the loan.
A contract whereby the seller agrees to pay to the purchaser in return for the payment of a premium, the difference between current interest rates and an agreed (strike) rate times the notional amount should interest rates fall below the agreed rate. A floor contract is effectively a string of interest rate guarantees.
The minimum rate of interest payable on an adjustable-rate class or mortgage.
Minimum rate of interest on an adjustable rate mortgage loan.
The minimum rate possible on a variable-rate loan or line of credit, after any initial introductory rate period. For example, on a credit card with the Prime rate as its index, no matter how low the Prime rate drops, the rate on the line may never decrease below the stated rate floor.
The facility of an exchange where brokers engage in trading; a price established below which others are not acceptable or allowed; a minimum on the interest rate in a contract or on a market value for inventory items, and other events
The lowest the interest rate on a variable or adjustable rate mortgage may go.
a type of derivative instrument that offers protection against declining prices, exchange rates or interest rates.
An option agreement that puts a lower limit on the interest rate .It provides lenders/investors with interest rate risk protection in case the rate goes below the floor rate. The lender/investor is compensated for any fall in rate below the floor rate.
the lowest limit of performance that can be assessed or measured by an instrument or process. Individuals who perform near to or below this lower limit are said to have reached the floor, and the assessment may not be providing a valid estimate of their performance levels. Such individuals should be given a less difficult assessment of the same attribute if it is necessary to differentiate between lower levels of performance. See Ceiling, Functional-Level Testing.
A term used in the system of indicator prices. The floor is the lower limit in the price ranges established for the purpose of adjusting quotas in response to movements in prices.* See also Adjustment of quotas; Ceiling; Indicator prices; Price ranges
The opposite of ceiling, it is the lowest limit of performance that can be measured effectively by a test. Individuals are said to have reached the floor of a test when they perform at the bottom of the range in which the test can make reliable discriminations. If an individual or group scores at the floor of a test, the next lower level of the test, if available, should be administered.
The interior of the crater. It is flat in large craters.
The interest rate below which the rate of an Adjustable-Rate Loan cannot be adjusted.
Under the Advisory Guidelines, the income level for the payor spouse below which the formulas do not apply.
An agreement that limits the holder's exposure to downward movements in the price or rate of the underlying instrument. Floors are similar to put options and are most often employed by sellers of the underlying instrument and by lenders in floating rate financing agreements. Floors are normally traded in OTC markets and can have tailored terms and conditions with performance risk assumed by the involved parties.
A type of derivative instrument which is linked to interest rates.
The minimum interest rate paid on a security or under a derivative agreement.
The lowest acceptable limit as restricted by controlling parties.
A feature of a floating rate security that stipulates a minimum coupon (the floor) below which the coupon cannot adjust.
In banking and finance, a floor can be negotiated and agreed upon when the interest rate is dependent on the market interest rate.
In business terms, the lowest acceptable level of trading and exchange. See 'Cap'.