Marginal Risk

(redirected from Marginal Risks)

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
In some cases, it enables the insurer to entertain marginal risks with a good insurance score.
The underwriter still might decide to accept a marginal risk but specify that it be priced according to published rates;
So a stronger loan--say $100,000 to expand an up-and-running business--would make it easier to take marginal risks. To cover the risk, the bank, the borrower, and the government pay a small percentage between 1.5 to 3.5 percent of the loan amount into a reserve fund.
"If all you needed to do is point to some marginal risk," he wrote, "then this Court should have struck down the 24-hour waiting period in the Casey decision, because the plaintiffs there said the 24-hour waiting condition has imposed significant risks.