Risk Management terms

Measure of how closely two assets move together or opposite each other.

Risk that the other party in a transaction fails to meet obligations.

Risk that a borrower or counterparty cannot meet payment obligations.

Risk that exchange-rate changes affect returns, costs or account value.

Amount of money or risk linked to a market, asset or direction.

Sum of long and short exposures without netting them.

Taking positions designed to reduce risk from another exposure.

Number of lots or units traded in a position.

Feature or rule preventing eligible clients from losing more than account balance.

Exposure after offsetting long and short positions.