Repurchase Agreements

Also known as a sell/buy back and often abbreviated to a Repo
This is classified as a money market instrument and not a derivative.
Also referred to as security lending.
secured loans that dealers use to finance their fixed income inventory
The price at which the security is bought back is greater than the selling price and the difference implies an interest rate called the repo rate
This is the difference between the borrowed amount and the amount paid back in cash, expressed as a percentage.

A repurchase agreement is an agrrement to sell some security to another party and buy it back at a fixed date and for a fixed amount
A repurchase agreement is a simultaneous sale and repurchase of a security at a specified price, interest rate and time.

Confusing Terminology

Repo terminology can be confusing. Technically, traders distinguish between repurchase agreements, or repos, and reverse repurchase agreements, or reverse repos or reverses. In practice, traders often say "repo" in either case.