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Aggregate risk

Stock market Aggregate DemandAggregate Supply

Aggregate risk - An aggregate risk consists of the sum of exposure a client has to actions of spot contracts, which are calls for the immediate delivery and sale of currency or other spot communities, which are bought and sold, in a spot market, ...

 


Aggregate Risk
Size of exposure of a bank to a single customer for both spot and forward contracts.
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Aggregate Risk
Total amount of exposure a bank has with a customer for both spot and forward contracts.
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The price at which the currency or instrument is offered.

The VaR risk measure is a popular way to aggregate risk across an institution. Individual business units have risk measures such as duration for a fixed income portfolio or beta for an equity business. These cannot be combined in a meaningful way.

This approach uses as a benchmark the aggregate risk and return characteristics of funds that share a similar investment style.

See also: Risk, Market, Order, Exposure, Point

Stock market Aggregate DemandAggregate Supply

 
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