Clearing: Difference between revisions

Clearing (view source)

1 byte added , 25 March 2019

no edit summary

82,891

edits

Revision as of 12:49, 25 March 2019 (view source) Amwelladmin (talk \| contribs) No edit summary ← Older edit		Revision as of 12:49, 25 March 2019 (view source) Amwelladmin (talk \| contribs) No edit summary Newer edit →
Line 4:		Line 4:
	If one of the parties in the deal goes into default, the clearing house takes over the defaulting party's obligations and fulfils them (either themselves or by finding another market participant will to take over the contract)		If one of the parties in the deal goes into default, the clearing house takes over the defaulting party's obligations and fulfils them (either themselves or by finding another market participant will to take over the contract)

	[[Clearing house]s require [[initial margin]] from both parties (as well as defasult fund contributions and other fun things) at the start of the contract which they use to manage the default.		[[Clearing house]]s require [[initial margin]] from both parties (as well as defasult fund contributions and other fun things) at the start of the contract which they use to manage the default.