In particular, Party B acts as a cash lender in a repo, while Seller A acts as a cash borrower and uses the collateral as collateral; in a reverse repo (A), is the lender and (B) the borrower. A repo is economically similar to a secured loan in which the buyer (effectively the lender or investor) receives securities as collateral in order to guard against the seller`s default. The party who first sold the securities is effectively the borrower. Many types of institutional investors participate in repo operations, including investment funds and hedge funds. However, for the time being, repo transactions (also known as rest) are only concluded with primary traders; Reverse charge arrangements (also known as reverse-rest arrangements) are concluded with both primary traders and an extensive set of reverse-pension counterparties, including banks, state-subsidised companies and money market funds. While the mechanisms of a reverse-repo involve the sale and then redemption of securities at a given price and at a given time, a reverse repo by nature financial is effectively a guaranteed loan. Another important aspect, when concluding the terms and conditions, is the Haircut for guarantees in the form of securities, for more details see CSA article. As in many other corners of finance, pensions contain terminology that is not common elsewhere..