# Repo (Repurchase Agreement)

*Markets & Instruments — Finicade finance glossary*

A short-term loan dressed as a sale: you sell a security and agree to buy it back tomorrow at a slightly higher price, the difference being the interest. Repos are the plumbing of short-term funding markets.

**Also known as:** repurchase agreement

**Related terms:** [Liquidity](https://finicade.com/glossary/liquidity), [Collateral](https://finicade.com/glossary/collateral), [Central Bank](https://finicade.com/glossary/central-bank)

**Taught in:** Quant Quest — Introduction to Financial Markets

Source: https://finicade.com/glossary/repo