daily lock-in

Definition

A guarantee in some financial products which tracks market value daily and will lock in future returns at any new high mark. For example, if a note was purchased with a guaranteed 5% return but at a later date the value of the underlying commodity raises to the equivalent of a 7% return, the new rate is locked-in and the note will pay out the higher 7% return at maturity.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
daily lock-in daily low