All futures contracts are between the client and the exchange clearing house thus effectively eliminating specific counterparty risk at delivery date.

Name: All futures contracts are between the client and the exchange clearing house thus effectively eliminating specific counterparty risk at delivery date.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

All futures contracts are cleared through an exchange clearing house, which acts as the intermediary between the two parties, effectively eliminating counterparty risk at delivery date.

All Futures Contracts Are Between the Client and the Exchange