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transaction exposure

 - 2 dictionary results
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Financial Dictionary

Transaction Exposure

In international trade, this is the potential risk that currency exchange rates will change after financial obligations are entered into.

Investopedia Commentary

Basically, this is the exposure a company has due to constantly changing exchange rates.

See also: Exchange Rate, Transaction, Translation Exposure

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
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Exposed Skin Care
Leading Acne Treatment! Official Site. Best Price Guarantee
www.exposedskincare.com
Financial Dictionary

transaction exposure

The risk of loss caused by changes in currency exchange rates when a company's payables and receivables are denominated in a foreign currency. Derivatives are used to hedge against changes in currency exchange rates and reduce transaction exposure.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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