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brokers are given caution deposit. In this way exchanges ensure the traders counter party risk.
<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>By the ‘caution deposit’ deposited by the broker in the exchange.</span>
exchange takes deposit from brokers and broker take caution deposite from traders.if trader fails for payment exchange cut it from brokers deposit.such a exchange ensure the traders counter party risk
Caution deposit made by the Broker to the exchange to avoid the counter party risk.
Using the caution deposit which is used to avoid the counter party risk
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