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OHC Trade Room · Reference

OHC glossary

Every term used across the OHC Trade Room courses, defined the way we teach it. No external definitions are substituted.

terms
553
categories
10
source modules
12

553 terms A–Z

Fixed Income Advanced

Modified duration

Macaulay duration divided by one plus the yield — the direct percentage price change for a 1% change in yield. It is the practical trading measure of interest rate sensitivity and the input to most hedging calculations. Paired with DV01 it gives both the relative and the cash view of rate risk.

Taught in
Module 3 — Fixed Income →
Level
Advanced — assumes working knowledge