Clearing House
Also called: central counterparty, CCP, clearinghouse
A clearing house steps between buyer and seller and becomes the counterparty to both, so neither has to assess the other's creditworthiness. It manages that concentrated risk with initial margin, daily variation margin and a default fund contributed by members. Post-2008 rules pushed most standardised derivatives into central clearing, which reduced bilateral contagion — and created a small number of institutions whose own failure would be catastrophic.
Where this is taught
Definitions are the trailer. These free levels turn Clearing House into something you play — one bite-size lesson, with worked examples, a quiz and XP.