Substitute sale

Substitute sale
A method for hedging price risk that utilizes debt-market instruments, such as interest rate futures, or that involves selling borrowed securities as the primary assets. ...

In the mortgage pipeline, an additional hedge placed in tandem with the forward or
substitute sale.
Option seller
Also called the option writer , the party who grants a right to trade a security at a given price in
the future.

Option not to deliver
In the mortgage pipeline, an additional hedge placed in tandem with the forward or substitute sale.
Option premium
The option price.

See also: Exercise price, Options contract, Values, Mortgage pipeline, Spot rate curve