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Investing Glossary: Herstatt risk

Copyright 2009, Campbell R. Harvey. All Rights Reserved.
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Term:
Herstatt risk
Definition:
The Risk of Loss in foreign Exchange trading that one party will Deliver foreign exchange but the Counterparty financial institution will Fail to Complete its end of the contract. This is also referred to as Settlement risk.



 

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1/8/2009 - SV1