Counterparty Risk

Filed Under: c by
Counterparty Risk
Risk arising from a possibility that a second party to the contract will fail to fulfill his obligations. With options contracts, the risk undertaken by the holder that the underlying may not be bought or sold by the writer.

Recommended for you:

  1. Counterparty
  2. Bankruptcy Risk
  3. Commercial Risk
  4. Herstatt Risk
Home / Glossary / c / Counterparty Risk