Floor

(1) In the context of interest rates guarantees a minimum rate of return but leaves the investor free to participate in rising interest rates above the agreed floor level. Similar in the field of exchange rate
(2) A term for an exchanges trading area (cf. screen based trading), normally the trading area is referred to as a pit in the commodities and futures market
(3) In the Basel II Capital Accord, the floor is set out to ensure that the capital requirements calculated by using the advanced internal rating approach will not go below a certain level (i.e. 90% of the Foundation approach capital charges).