Skip to main content
Options and Futures

Discount Method

The concept of discounted interest involves issuing a security at a price lower than its par value, and then repaying the full par value at the time of maturity. This difference between the lower purchase price and the higher par value is considered as the interest. As an effective method of interest payment, discounted interest plays a significant role in the world of finance.

Related terms

Linkage

Understand the meaning and definition of Linkage in the context of stock market, trading, and investments.

MORE
Federal Funds Rate

Understand the meaning and definition of Federal Funds Rate in the context of stock market, trading, and investments.

MORE
Fill-or-Kill

Understand the meaning and definition of Fill-or-Kill in the context of stock market, trading, and investments.

MORE
Forex Market

Understand the meaning and definition of Forex Market in the context of stock market, trading, and investments.

MORE
Deferred (Delivery) Month

Understand the meaning and definition of Deferred (Delivery) Month in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store