principal risk definition
principal risk means the risk that a counterparty will lose the full value involved in a transaction, i.e. either the risk that a seller of a financial asset will irrevocably deliver the asset, but not receive payment, or the risk that a buyer of a financial asset will irrevocably pay for, but not receive the asset;
principal risk means the risk that the seller or buyer of a currency will deliver such currency or pay without the corresponding payment or delivery taking place. This excludes the interest payable on the obligation;
principal risk means the risk of outright loss of the full value of a transaction resulting from a counterparty’s failure to settle. This can arise from an AI having paid the currency being sold but failing to receive the currency being bought in a foreign exchange transaction (also known as “Herstatt
More Definitions of principal risk
principal risk means the risk that a counterparty will lose the full value involved in a transaction,