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For forward contracts and alike, Why the CFA institute mentioned: It is important to recognize that although either party could default to the other, only

For forward contracts and alike, Why the CFA institute mentioned:

It is important to recognize that although either party could default to the other, only one party at a time can default.

The party owing the greater amount could default to the other, but the party owing the lesser amount cannot default because its claim on the other party is greater.

Why the party owing the lesser amount cannot default ??

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