Floor (also used in German, but with different meanings)

Guaranteed minimum interest rate, as agreed in particular for floaters. Even if interest rates fall below this level, the investor is still granted the minimum interest rate. – This downside protection comes at a price. If market interest rates are higher than the minimum rate, the investor is granted a somewhat lower interest rate. The opposite – i.e., the upper limit of the interest rate – is known as the cap. – A trading place on the stock exchange (the area of an exchange where securities are traded). – See cap, inflation options, pit.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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