Counterparty risk
From MarketsWiki
| This page is not complete! |
| Do you have knowledge to contribute on this or other subjects?
Help the wiki grow -- add what you know. |
The risk that the other party in an agreement will not live up to its contractual obligations, i.e. will default.
In futures and options trading, exchanges generally provide a cushion against counterparty risk by acting as an intermediary between the two parties.
| This page needs a sponsor. |
| Put your logo here! |
| Email us for information on how to support MarketsWiki. |
References

