Overnight Delivery Risk

Overnight Delivery Risk
Risk arising from difference in time zones because settlement centers are located in different places. Situations may arise where delivery or payment has to be carried out without accurate knowledge of whether funds have been credited into the account at the other center. Evident in transactions where payment is made in the U.S. in dollars while delivery has to take place in Europe.

Random Finance Terms for the Letter O

  • Overreaction Hypothesis
  • Overseas Private Investment Corporation (OPIC)
  • Overshooting
  • Oversubscribed Issue
  • Oversubscription Privilege
  • Over-the-Counter Market (OTC)
  • Overwriting
  • Oversubscribed Issue
  • Oversubscription Privilege