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Posts tagged as “Counterparty”
Understanding Credit Risk
September 5, 2025 |
In the world of finance, every loan, investment, or credit agreement carries some degree of uncertainty. The possibility that a borrower might fail to meet their obligations is known as credit risk.
Basics of Swaps
August 19, 2025 |
A swap is a derivative contract where two parties agree to exchange the cash flows from two different financial instruments over a specified period.
Basics of Forwards Contracts
August 19, 2025 |
A forward contract is a private, non-standardized agreement between two parties to buy or sell an asset at a pre-agreed-upon price on a specific date in the future.
Basics of Derivative Contracts
August 19, 2025 |
A derivative contract is a financial agreement between two parties that "derives" its value from an underlying asset or benchmark.
Basics of Futures Contracts
August 19, 2025 |
A futures contract is a standardized, legally binding agreement to buy or sell a specific asset at a predetermined price on a specified date in the future. These contracts are traded on a futures exchange and are used for two primary purposes: hedging and speculation.
Off-Balance-Sheet Risk
July 16, 2025 |
Off-balance-sheet (OBS) risk refers to the potential for financial losses or liabilities arising from activities or transactions that do not appear directly on a company's balance sheet.
Stablecoin
June 19, 2025 |
A stablecoin is a type of cryptocurrency designed to minimize price volatility, unlike traditional cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH) whose values can fluctuate wildly.
The financial markets are complex and diverse, populated by a wide range of participants, each with different objectives, strategies, and roles.
How to Manage Financial Risk in A Business Organization?
March 27, 2025 |
In today's interconnected and unpredictable economic landscape, financial risk management is no longer a luxury, but a critical survival skill for businesses of all sizes.