The clearinghouse manages the default risk faced by traders in the futures market.

Name: The clearinghouse manages the default risk faced by traders in the futures market.
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The clearinghouse acts as a counterparty to both the buyer and seller of a futures contract, thereby managing the risk that a party may default on their obligation to fulfill the terms of the contract. This helps to ensure the smooth functioning and stability of the futures market.

The Clearinghouse Manages the Default Risk Faced by Traders in the Futures