Happens when a company operates with foreign currency-denominated contracts (possible changes in the exchange rate).
Risk to a firm with known future cash flows in a foreign currency that arises from possible changes in the exchange rate. Related: translation exposure.
in foreign exchange, is the possibility of incurring exchange gains or losses on transactions already entered into and denominated in a foreign currency. It is typified by real exchange gains or losses and mixes retrospective and prospective views. It is short-term in nature.
Changes in the value of contractual (monetary) cash flows as a result of changes in currency values.
Exchange rate risk arising from transactions already entered into and denominated in foreign currencies.
Transaction Insured Trade Acceptance Locator TITAL Transaction risk
In international trade, this is the potential risk that currency exchange rates will change after financial obligations are entered into.
The vulnerability of a company's known future cash flows, including receivables or payables, to changes in exchange rates from the time a transaction is entered into until it is completed. Also known as transaction risk.