Export Options:
Trading
CDS (Credit Default Swap)
Insurance-like contract on credit risk; buyer pays premium to receive payoff on default
Definition
A Credit Default Swap is a derivative contract where the buyer pays a premium to the seller in exchange for protection against credit default. If the underlying asset defaults, the seller compensates the buyer. CDS spreads reflect perceived credit risk.
Related Topics
#derivative
#credit risk
#insurance
#default protection
Quick Actions
Related Terms
Category: Trading
Trading concepts cover market mechanics, order types, liquidity, and execution strategies.
View all Trading terms →