Counterparty Risk
Definition
The risk associated with the financial stability of the party entered into contract with. Forward contracts impose upon each party the risk that the counterparty will default, but futures contracts executed on a designated contract market are guaranteed against default by the clearing organization.
Related Terms Other terms related to 'Counterparty Risk' starting with the letter 'C' Cross Margining, Clearing Association, Close, Core Principle, Carrying Broker Browse by Letter » A B C D E F G H I J K L M N O P Q R S T U V W Y Z
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