Duration
Duration measures how sensitive the price of a fixed-income asset is to changes in interest rates, and it is often used to manage rate risk.
Category
Balance Sheet Risk
These terms describe exposure and resilience concepts used in risk management for portfolios, treasuries, and counterparties.
How to recognize this theme
Finance terms that describe what can go wrong even without price predictions.
In a daily board, this category groups terms by their shared role. Look for four cards that describe the same mechanism, risk area, or workflow rather than four words that merely sound similar.
Educational context
These entries are vocabulary notes for learning. They are not project endorsements, token recommendations, exchange rankings, or trading signals.
Liquidity Buffer
A liquidity buffer is a set of readily available assets kept to meet withdrawals, redemptions, or margin needs during stressed conditions.
Counterparty Exposure
Counterparty exposure is the risk that a trading partner, lender, custodian, or service provider fails to meet its obligations, causing losses or delays.
Basis Risk
Basis risk is the risk that two related prices (such as spot and futures, or two similar assets) move differently, reducing the effectiveness of hedges.