Trading TermsForward-Rate Agreements (FRAs) Due date Entry Short (oversold) position Opportunity Costs Liability
Performance bond (guarantee)
A performance bond is a contractual agreement that serves as a form of security for one party's performance. In the event that the principal fails to fulfill their obligation, the beneficiary has the right to receive payment from the bond. This type of bond can be either demand or conditional, which determines whether the beneficiary must prove the default by the principal in order to receive payment. It is an important aspect of risk management in financial transactions and should be carefully considered by all involved parties.
Related terms
Understand the meaning and definition of Forward-Rate Agreements (FRAs) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Due date in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Entry in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Short (oversold) position in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Opportunity Costs in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Liability in the context of stock market, trading, and investments.
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