A linear contract is quoted and settled in the quote currency (a dollar or a stablecoin), its P&L linear in the price: for units bought at . An inverse contract has a fixed notional in the quote currency but is margined and settled in the underlying coin, so that contracts of one dollar each bought at earn coins. A quanto contract is quoted on one asset but margined and settled in another at a fixed rate per unit of price move, so that its P&L in the settlement asset is for a multiplier , whatever the settlement asset’s price.
Quantitative Finance · Begrippenlijst
Wat is Linear, inverse and quanto contracts?
Ook bekend als: linear contract · inverse contract · quanto contract