Collateral Control of the → Counterparty risk In derivatives transactions, market values are collateralised, typically by providing cash. The standard practice is a mutual obligation to provide collateral, i.e. both parties are obliged to provide cash collateral to the counterparty. The terms of the collateralisation can be agreed and documented individually between the counterparties, for example with regard to the frequency of revaluation (daily, weekly, etc.). Collateralisation may also take the form of securities, and it is possible that only one of the counterparties is obliged to provide collateral.