Counterparty risk
Risk & psychologyThe risk that the other side of a transaction fails to deliver.
In plain terms
On an exchange the clearing corporation absorbs it. Outside one, your claim ranks alongside every other creditor of a private company.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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