floating rate instrument

What is floating rate instrument?

floating rate instrument definition and meaning on Finance terms:
A financial instrument for which the coupon is periodically reset relative to a reference index to reflect changes in short or medium-term market interest rates. Floating rate instruments have either pre-fixed coupons or post-fixed coupons. <


reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html