WHAT IS COUNTERPARTY RISK AND WHY DOES IT MATTER TO ME?
Counterparty risk is a term often used in financial circles but is also a term that many investors do not understand. Here we will examine just what counter-party risk is, and how it may affect you and your investments. COUNTERPARTY RISK: According to Investopedia, counterparty risk is defined as “The risk to each party of a contract that the counterparty will not live up to its contractual obligations. Counterparty risk is a risk to both parties and should be considered when evaluating a contract.” According... Continue Reading
Category | Gold