Aggregate Risk

Total amount of exposure a bank or investor has with a customer for both spot and forward Forex contracts.Spot contracts are when one buys a currency right away with little to no notice ahead of time. Usually it is a verbal agreement made between the buyer and the seller. A forward contract is when one can set a price on something and buy it at that price however does not officially pay until a later date. This works well for someone who can stick with the original price and not have to worry about the exchange rate changing on them at a later time.