Default

A default is the condition in which a debtor is unable to meet the payment obligations set out in a debt, for example, the repayment of the principal or interest on a security or loan.

The term applies to different entities: companies, financial institutions and States. A default may be partial or total and generally has consequences for the debtor’s creditworthiness and for the value of the related securities.

In the context of crypto-assets and decentralised finance, the concept of default refers to situations in which a protocol or counterparty is unable to meet its commitments.

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Correlated words

Indicator

An indicator is a technical-analysis tool that processes historical price or volume data to describe a market's past behaviour.

Financial Instrument

A financial instrument is a contract that grants financial rights, such as shares, bonds or derivative products, to its holder.

Purchasing power

Purchasing power refers to the quantity and quality of goods and services that can be acquired with a given amount of money.

Bonds

Bonds are debt securities through which an issuer raises capital, committing to repay it together with a form of remuneration.

Deficit

A deficit is the situation in which, over a given period, outflows exceed inflows, resulting in a negative balance or shortfall.

CPI

The Consumer Price Index (CPI) is the principal measure used to track inflation, reflecting the average price change over time.

Capital

Capital refers to funds or assets for investment or economic activities crucial for business growth and development.

Capital gain

A capital gain is the profit realised when an asset is sold at a price higher than the price originally paid to acquire it.

Commercial Bank

Commercial Banks cater to individuals and small businesses, offering deposit accounts, loans, and other traditional banking services.

Central Bank

The Central Bank sits atop the banking hierarchy, working with the government to regulate monetary policy and currency issuance.

Stocks

Stocks are financial instruments representing ownership shares in a company, entitling holders to a portion of the corporate profits.