What is the role of exchange in derivative instruments?

[Aravind S]

<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Exchange makes the settlement between the buyer & the seller and also protects the counter party risks</span>

[Denis]

To avoid counter party risk and to mark to market,monitor contract.

[Ranjani Arumugam]

The exchange plays a role of a garantor for both the buyers and the sellers thus eliminates counter party risks.

[Rahul]

Daily price settlement and counter party risk is monitored by exchange.

[Arun kumar]

to avoid counter party risk for both sellers and buyer

[Author]

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