A trade can earn a positive price gain and still lose money after funding costs. Money-market instruments supply that short-term funding. This lesson explains bill quotes, deposits and repo, then calculates a funding payment. It connects discounting conventions with the collateral needed to borrow cash.
In this lesson
- Learning objectives
- Short-dated instruments
- Repo: borrowing against securities
- Repo interest is a cash difference
Before you start
The full lesson, with worked examples and exercise solutions, is for members.
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