# Curve Bootstrapping

*Quant & Pricing — Finicade finance glossary*

Curve bootstrapping builds a zero-coupon curve step by step from traded instruments, using each shorter maturity's solved rate to strip the next. Start with deposits and futures at the front, then swaps further out, and every quoted instrument reprices exactly by construction. The results depend visibly on the interpolation scheme chosen between nodes, which is why two banks can hold different forward rates from identical market data.

**Also known as:** bootstrapping the yield curve, zero curve construction

**Related terms:** [Zero Rate](https://finicade.com/glossary/zero-rate), [Discount Factor](https://finicade.com/glossary/discount-factor), [Yield Curve](https://finicade.com/glossary/yield-curve), [No-Arbitrage](https://finicade.com/glossary/no-arbitrage), [Forward Rate](https://finicade.com/glossary/forward-rate)

Source: https://finicade.com/glossary/curve-bootstrapping