Floor - Financial definition
Financial acronyms
The entire acronym collection of this site is now also available offline with this new app for iPhone and iPad.
Concise definition of the term floor
An interest rate floor is composed of a series of interest rate options which pay out if rates fall below the floor level (strike).
Comprehensive definition of the term floor
A floor can be used to guarantee a minimum return on floating rate investments (whilst still taking advantage of higher rates should they occur).