www.financial-terms.co.uk


Home
Definitions



Compare
Debt


Downside Protection

The financial definition for Downside Protection:

Generally used in connection with covered call writing, this is the cushion against loss, in case of a price decline by the underlying security, that is afforded by the written call option. Alternatively, it may be expressed in terms of the distance the stock could fall before the total position becomes a loss (an amount equal to the option premium), or it can be expressed as percentage of the current stock price.




Similar Matches

Call protection

Call protection
A feature of some callable bonds that establishes an initial period when the bonds may not be called.


Consumer Credit Protection Act of 1968

Consumer Credit Protection Act of 1968
Federal legislation establishing rules for the disclosure of the terms of a loan to protect borrowers. See: Truth in lending.


Protectionism

Protectionism
Notion that governments should protect domestic industry from import competition by means of tariffs, quotas, and other trade barriers.


Further Suggestions

Retirement Protection Act of 1994


Click to compare definitions of
Downside Protection
Click to view definitions beginning do
  www.financial-terms.co.uk is a finance, business, investment and stock market resource of common financial words by T4 Innovations.