Uncovered

1. In relation to a cover ratio, the situation where the cover ratio falls below 1.0.

2. In relation to a market position, the situation where the position taker is exposed to the risk of adverse changes in market rates or prices.

3. In relation to an operational exposure, an uncovered exposure is one which has not been hedged.

See also

• Cover ratio
• Covered position
• Hedging
• Uncovered interest arbitrage