The Prop Trader's Dictionary

From drawdown rules to payout splits — every term you need to understand, master, and pass your challenge.

K

Key Rate Duration

Key rate duration is a measure of a bond or fixed-income portfolio's sensitivity to changes in interest rates at specific points along the yield curve, rather than treating all rate changes as uniform. It helps investors understand how a portfolio will respond to non-parallel shifts in the yield curve. Portfolio managers use key rate duration to fine-tune interest rate risk.

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Kickback Meaning in Business

In a business context, a kickback refers to an unethical or illegal payment made to someone in exchange for facilitating a deal, referral, or contract. Kickbacks are a form of corruption that distort fair market competition and are prohibited under many financial regulations. They can take the form of cash, gifts, or other benefits.

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Kondratieff Cycle

The Kondratieff Cycle, also known as the K-Wave, is a long-term economic theory suggesting that capitalist economies experience recurring cycles of expansion and contraction lasting approximately 40 to 60 years. Named after Russian economist Nikolai Kondratieff, these cycles are driven by major technological innovations and shifts in capital investment. Each cycle is characterised by phases of boom, stagnation, and decline.

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3+ terms

Explore all glossary terms currently grouped under the letter "K".