Michele
Sun Aug 11 2024
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6 answers
1470
What are the disadvantages of swap contract?
As a curious investor, I'm wondering about the potential drawbacks of engaging in swap contracts. Could you elaborate on some of the disadvantages that one might encounter when utilizing these financial instruments? For instance, are there risks associated with counterparty default, liquidity issues, or perhaps complexities in understanding and managing the contract terms? Additionally, how might market volatility and changes in underlying asset prices impact the performance of a swap contract? I'm keen to gain a comprehensive understanding of the potential pitfalls before making any investment decisions.
