FT MarketWatch

Counterparty risk

The Risk that the other Party in an agreement will Default. In an option Contract, the Risk to the Option buyer that the Writer will not Buy or Sell the underlying as agreed. In general, Counterparty risk can be reduced by having an organization with extremely good Credit act as an intermediary between the two parties.

Related Terms: 13 Buy, Contract, Credit, Counterparty risk, Default, Option, Option contract, Party, Risk, Sell, Term, Write, Writer
Other Related Pages: Category: Options Starting With: C
Semi Related Terms: 459 CLICK HERE TO VIEW