Counterparty risk - Exposure to a loss resulting from a default on a payment due. Also known as credit risk.
The risk that the other party to an agreement will default. In an options contract, the risk to the option buyer that the option writer will not buy or sell the underlying as agreed.
Counterparty risk : exposure to a loss resulting from a default on a payment due. also known as credit risk.
the risk that the other party to an agreement will default. in an options contract, the risk to the option buyer that the option writer will not buy or sell the underlying as agreed.