Prime brokerage transactions: Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 7: | Line 7: | ||
*'''Physical long''': A physical long position financed with a [[margin loan]]. | *'''Physical long''': A physical long position financed with a [[margin loan]]. | ||
*'''Physical short''': A physical short position created by selling a stock borrowed under a [[stock loan]]. | *'''Physical short''': A physical short position created by selling a stock borrowed under a [[stock loan]]. | ||
*'''Synthetic long''': A “[[synthetic]]” economic equivalent of a physical long position created by entering | *'''Synthetic long''': A “[[synthetic]]” economic equivalent of a physical long position created by entering a “long” [[equity derivative]] as a {{eqderivprov|Floating Amount Payer}}. | ||
*'''Synthetic short''': A “[[synthetic]]” economic equivalent of a physical short position created by entering | *'''Synthetic short''': A “[[synthetic]]” economic equivalent of a physical short position created by entering a “short” [[equity derivative]] as a {{eqderivprov|Equity Amount Payer}}. | ||
{{sa}} | {{sa}} | ||
*[[Prime brokerage charging]] | |||
*[[Prime brokerage]] | *[[Prime brokerage]] | ||
Revision as of 17:53, 6 January 2021
|
Prime Brokerage Anatomy™
   
|
The classic prime brokerage transactions, illustrated in the panel:
- Physical long: A physical long position financed with a margin loan.
- Physical short: A physical short position created by selling a stock borrowed under a stock loan.
- Synthetic long: A “synthetic” economic equivalent of a physical long position created by entering a “long” equity derivative as a Floating Amount Payer.
- Synthetic short: A “synthetic” economic equivalent of a physical short position created by entering a “short” equity derivative as a Equity Amount Payer.