DEFINITION of 'Vanilla Strategy'
An approach to investing or to business decisionmaking that is basic and common. Some investors and businesses excel because they choose an ordinary, vanilla strategy, while others succeed through innovation. In derivatives trading, a vanilla strategy is the use of two different plain vanilla instruments, such as swaps, at the same time.
BREAKING DOWN 'Vanilla Strategy'
For example, a vanilla strategy for retirement saving might include saving at least 10% of one's annual income, investing in diversified portfolio of stocks and bonds through taxadvantaged savings accounts like a 401(k) and Roth IRA, and buying a home with a plan to pay off the mortgage before reaching retirement. There is nothing interesting or unique about this strategy  it is "vanilla" because it is ordinary.

Plain Vanilla Swap
The most basic type of forward claim that is traded in the overthecounter ... 
Plain Vanilla
The most basic or standard version of a financial instrument, ... 
Vanilla Option
A financial instrument that gives the holder the right, but not ... 
Plain Vanilla Card
A basic credit card with no special features or perks and no ... 
Asset Swap
Similar in structure to a plain vanilla swap, the key difference ... 
Cash Account
A regular brokerage account in which the customer is required ...

Investing Basics
What Does Plain Vanilla Mean?
Plain vanilla is a term used in investing to describe the most basic types of financial instruments. 
Financial Advisors
Ditching HighYield Bonds for Plain Vanilla Ones
In a lowrate environment, it's tempting to go for higher yield bonds. However, you might be better off sticking with the plain vanilla ones. 
Options & Futures
Options Basics: Types Of Options
The distinction between American and European options has nothing to do with geographic location. 
Investing
What's an Interest Rate Swap?
An interest rate swap is an exchange of future interest receipts. Essentially, one stream of future interest payments is exchanged for another, based on a specified principal amount. 
Forex Education
You Get What You Pay For
Investing online is cheaper, safer and easier than ever before. Find out how to choose the broker that will help you get the most for your money. 
Professionals
What is a Derivative?
CFA Level 1  What is a Derivative?. Learn the basicas of derivative instruments. Covers various types of options, swaps and differentiates exchange and overthecounter trades. 
Professionals
Investment Strategies
Investment Strategies 
Forex Education
Currency Swap Basics
Find out what makes currency swaps unique and slightly more complicated than other types of swaps. 
Fundamental Analysis
Derivatives 101
Learn how to use this type of investment as an alternative way to participate in the market. 
Term
The Annual Report Is a Public Company's Obligation
The annual report is a yearly publication that public corporations provide to shareholders to describe the company’s operations and financial condition.

What is the difference between derivatives and swaps?
Find out more about derivative securities, swaps, examples of derivatives and swaps, and the main difference between derivative ... Read Answer >> 
Do interest rate swaps trade on the open market?
Learn how interest rate swaps are traded on the OTC and interbank markets, and how these swaps can be used to arbitrage different ... Read Answer >> 
Can bond traders trade on interest rate swaps?
Read about interest rate swaps and why these transactions are performed by institutional actors in the bond market, not individual ... Read Answer >> 
How many votes am I entitled to, if I own ordinary shares of a company?
Understand what an ordinary share is and how it may benefit investors. Learn how many votes an investor is entitled to, if ... Read Answer >> 
What are interest rate swaps on the OTC market?
Learn about interest rate swaps and how they are traded over the counter, and understand the impact of DoddFrank on swaps ... Read Answer >> 
What does the notional principal of a derivative contract refer to?
Find out more about the notional principal amount, interest rate swap agreements and how the notional principal amount in ... Read Answer >>