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   Execution Risk
   















 

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Execution Risk

The chance that a desirable transaction cannot be executed within the context of recent market prices or within limits proposed by an investor. Unless a financial intermediary is willing to act as a dealer (principal) and guarantee a specific execution-within the rules of a marketplace-investors face execution risk in virtually all financial instruments. See also Unwinding Risk, Roll-Over Risk.

Promoting market integrity reduces execution risk. Find out more in "Key Risk Concepts: Market Integrity."

Reducing execution risk is part of customer protection. Find out more in "Key Risk Concepts: Customer Protection."

Glossary * E