principal risk

What is principal risk?

principal risk definition and meaning on Finance terms:
The risk that the seller of a financial asset (e. g. securities or currency) will deliver, but not receive payment, or the risk that the buyer will pay, but not receive delivery. In such a situation, the full value of the securities or funds transferred is at risk. See also
delivery versus payment
payment versus payment<

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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