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-{{a|collateral|}}The risk in a financial product that the investment or [[underlier]] in question goes up or down. Contrast this with the [[credit risk]] of an instrument, which is the risk that your [[counterparty]] doesn’t pay you the spectacular performance of your financial product.
+{{a|security|}}{{d|Market risk|/ˈmɑːkɪt rɪsk/|n|}}
-[[Market risk]] and [[credit risk]] therefore, in many ways,  pull in opposite directions. A fellow who is [[out-of-the-money|taking a bath]] from a market risk perspective won’t be too fussed if {{sex|his}} [[counterparty]] fails (and given the [[flawed asset]] provisions of Section {{isdaprov|2(a)(iii)}} might actually quite like that idea); a lady who is massively [[in-the-money]] will be most concerned if {{sex|her}} [[counterparty]] fails. Hence, [[initial margin]] and [[variation margin]].
+The risk that the asset, investment, product or [[underlier]] in which you have invested goes ''up'' when you want it to go ''down'', or ''down'' when you want it to go ''up''.
+Market risk can be contrasted with [[credit risk]]: the risk that the counterparty with whom you have entered a transaction to take some market risk, cannot pay you the return your market risk has earned you, because it is ''broke''.
+[[Market risk]] and [[credit risk]], therefore, in many ways, pull in opposite directions: a fellow who is [[out-of-the-money|taking a bath]] on his ''market'' risk won’t be too fussed if {{sex|his}} [[counterparty]] blows up (and given the [[flawed asset]] provisions of Section {{isdaprov|2(a)(iii)}} might actually quite like that idea); a lady who is massively [[in-the-money]] will be horrified if {{sex|her}} [[counterparty]] fails.
+Hence, [[initial margin]] and [[variation margin]].
 {{sa}}
+*[[Variation margin creates more problems than it solves]]
 *[[Credit risk]]