On a forward currency contract, the counterparty —that is, the opposing party in the transaction— is generally a large bank with international operations. Because typically no money changes hands at the outset of a forward currency contract, the counterparty risk is limited to the profit or loss on the contract; it is not the notional value of the contract. For example, a firm buys AUD 1,000,000 for delivery in one month at AUS-USD 0.9000. If, in one month, the exchange rate increases to 0.9090, there is a profit of USD 9,000 on the trade. This profit is also the extent of the counterparty risk run by the firm (should the counterparty fail to sell AUD at 0.9000), since no money changed hands at the outset of the contract.