Advanced
Counterparty default and replacement exposure
A forward can gain market value while becoming harder to collect. Counterparty risk concerns whether the other party can perform when that value is needed.
Read articleFOLITIC / FORWARDS TRADING GUIDE
Forwards Trading Guide
Understand forward contracts, interpret quotes and build currency, commodity and portfolio hedges. Follow ten stages from contract basics to advanced valuation, execution and disciplined risk management.
Start with What a forward contract commits you to, then follow the next lesson links. Explore 40 lessons with worked examples, exercises and further reading.
Explore the learning path
Browse by topic
Counterparty Collateral and Documentation · All lessons
Counterparty Collateral and Documentation
Manage credit exposure, cash calls, legal terms and settlement risk.
Advanced
Master agreements confirmations and netting
Documentation turns a market quote into defined rights and obligations. The master agreement and the trade confirmation perform different jobs.
Read article
Advanced
Collateral margin calls and funding liquidity
Collateral can reduce credit exposure while creating an immediate funding need. A hedge that works economically can still strain available cash.
Read article
Advanced
Settlement risk and payment versus payment
Foreign exchange settlement can expose the full outgoing currency amount. Payment versus payment addresses that principal risk by linking the two transfers.
Read article