Credit risk and Short selling: Difference between pages

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1.
Short selling means selling an asset that one does not already own.  
 
The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter. 
 
In exchange-for-value settlement systems, the risk is generally defined to include both replacement cost risk and principal risk.
 
 
2.
 
A weighted measure reflecting both the maximum possible amount of the credit loss (also known as the credit exposure), and the likelihood of such loss.


(Short selling is contrasted with normal selling, which means selling an asset that one does already own.)


== See also ==
== See also ==
* [[Banker's payment]]
* [[Short position]]
* [[CCR]]
* [[Short]]
* [[Counterparty risk]]
* [[Covenant]]
* [[Credit default swap]]
* [[Credit derivative]]
* [[Credit exposure]]
* [[Credit rating]]
* [[Credit rating agency]]
* [[Credit risk diversification]]
* [[Capital risk]]
* [[ECL]]
* [[Event risk]]
* [[Exchange-for-value system]]
* [[High-yield]]
* [[KMV]]
* [[Merton distance-to-default]]
* [[Operational risk]]
* [[Pre-settlement risk]]
* [[Price risk]]
* [[Prime bank]]
* [[Principal risk]]
* [[Putting a limit on losses]]
* [[Replacement cost risk]]
* [[Reputational risk]]
* [[Risk mitigation]]
* [[Sovereign risk]]
* [[TED spread]]
* [[Transaction risk]]
 
[[Category:Manage_risks]]

Revision as of 15:28, 31 October 2016

Short selling means selling an asset that one does not already own.

(Short selling is contrasted with normal selling, which means selling an asset that one does already own.)


See also