Jun 28, 2020 · tarf It stands for target redemption forward ; a structured product (specifically a target redemption note ) which consists of a strip of forwards each of which has its payout as the difference between the underlying rate on a given fixing and a predefined strike level:

Nov 28, 2024 · For corporates that favour outperformance and can take directional views, the Pivot TARF can prove to be a useful addition to their risk management toolkit. A variation to the standard TARF, the Pivot is part of the Box Trade family of products and knits together a sell EURUSD TARF with a buy EURUSD TARF, centred around a central pivot point.

Apr 12, 2025 · Imagine a TARF where an investor agrees to buy EUR/USD at a strike price of 1.20, with a target redemption amount of €1 million. If the EUR/USD rate moves favorably and reaches 1.25, the investor benefits from the difference.

Sep 11, 2024 · A TARF is really a strip of options which ceases to exist (knock out) once a cumulative Target profit is reached. This target caps the upside. If you keep the "unlimited" leveraged downside, you get even cheaper product (more "favourable" strike).

Aug 6, 2024 · This article reviews one of the more popular outperformance strategies, the Target Accrual Redemption Forward (TARF), otherwise known as the Target Profit Forward (TPF). What is a TARF? A TARF is a structured FX forward that offers an enhanced rate that is considerably more attractive than the equivalent market forward.

Jun 23, 2017 · In this post we start with reviewing our simulation based TARF pricing model. Definition & Scope. A Target Redemption Forward (TARF) transaction allows a customer to exchange one currency for another at a contract rate that is more attractive compared to the rate on a traditional forward contract.

Target redemption forward (Tarf) A target redemption forward is a foreign exchange product that allows the holder, usually a corporate, to buy or sell a currency at an enhanced rate for a number of expiry dates, with zero upfront premium.

Target Redemption Forward (TARF) is a structured note with a complex enhanced coupon structure. The note can be compulsively terminated once the accumulated coupon breaches a pre-determined level. The structured coupons are usually affine-linear with respect to an underlying spot and may be capped and floored.

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Jun 17, 2017 · TARF Hedge Effectiveness – Impact over exposure. TARF Hedge Effectiveness – Worst case loss. Client preferences vary. If a client is interested in limiting potential downside especially under extreme unanticipated events – the worst case loss …