Marginal Risk

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Marginal Risk

The risk that the holder of a forward contract will declare bankruptcy before the contract matures. In such a case, the holder may not have sufficient funds to actually take possession of the underlying asset.
References in periodicals archive ?
But this Court didn't say, well, you know, you're right, there's marginal risks, we're going to apply a zero tolerance rule.
In some cases, it enables the insurer to entertain marginal risks with a good insurance score.
So a stronger loan--say $100,000 to expand an up-and-running business--would make it easier to take marginal risks.