Updated: Aug 20, 2021

An agreement whereby one party pays a sum of money if an event occurs on consideration of the other party paying a fixed sum if it does not. Neither party has a personal interest in the event or stands to lose anything other than the money which is the subject matter of the agreement.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.