Interest rate derivatives are financial contracts whose value is derived from an underlying interest rate benchmark. They allow market participants to hedge interest rate risk or take positions on rate movements without transacting in the underlying cash instrument and range from OTC swap structures to exchange-traded futures.
Contracts in which two parties exchange interest rate cash flows, typically fixed for floating, on a notional principal amount, used to manage interest rate exposure or take yield curve views.
The most widely used INR interest rate derivative, referenced to the overnight MIBOR rate, used for hedging or expressing views on short-term rate movements.
Exchange-traded contracts on interest rate benchmarks, offering a standardized route to hedge or take positions on interest rate movements without transacting in the underlying cash bond.
