Transaction Exposure

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Dictionary Says

Definition of 'Transaction Exposure'

The risk, faced by companies involved in international trade, that currency exchange rates will change after the companies have already entered into financial obligations. Such exposure to fluctuating exchange rates can lead to major losses for firms.
Investopedia Says

Investopedia explains 'Transaction Exposure'

Often, when a company identifies such exposure to changing exchange rates, it will choose to implement a hedging strategy, using forward rates to lock in an exchange rate and thus eliminate the exposure to the risk.
Search results for

'Transaction Exposure'

  • Managing Currency Exposure In Your Portfolio

    http://www.investopedia.com/articles/basics/12/portfolio-currency-exposure.asp
    ... has? SEE: Forex Currencies: Introduction Currency and Transaction Exposure
    Exchange rates impact investors around the world. For ...

  • Dissecting Leveraged ETF Returns

    http://www.investopedia.com/articles/exchangetradedfunds/07/leveraged-etf.asp
    ... This results in interest and transaction expenses and significant fluctuations
    in index exposure due to daily rebalancing. Because ...

  • Forex Minis Shrink Risk Exposure

    http://www.investopedia.com/articles/forex/08/mini-lot.asp
    ... traders do not want to stomach the risk that comes with the exposure of a ... Transaction,
    translation and economic risks can affect a company's balance sheet. ...

  • What is the ideal number of stocks to have in a portfolio?

    http://www.investopedia.com/ask/answers/05/optimalportfoliosize.asp
    ... Of course, the transaction costs of holding more stocks can add up ... minimum number
    of stocks necessary to effectively remove their unsystematic risk exposure. ...

  • Getting Positive Results With Market-Neutral Funds

    http://www.investopedia.com/articles/mutualfunds/09/market-neutral-funds.asp
    ... could also choose to match the long exposure and the short exposure with the ... in Stop
    Paying High Mutual Fund Fees.) All funds have transaction expenses that ...

  • A Guide To Real Estate Derivatives

    http://www.investopedia.com/articles/optioninvestor/08/real-estate-derivative.asp
    ... illiquid, real estate investors have found it hard to hedge their exposure or execute
    alpha strategies. Real estate characterized by high transaction costs and ...

  • Credit Default Swaps: An Introduction

    http://www.investopedia.com/articles/optioninvestor/08/cds.asp
    ... can create a synthetic portfolio of bonds that has the same credit exposure and
    payoffs. ... for the very short term in the hope of profiting from the transaction. ...

  • Bettering Your Portfolio With Alpha And Beta

    http://www.investopedia.com/articles/07/alphabeta.asp
    ... When buying index futures to obtain beta exposure, an investor only needs a ... date
    for a futures contract, and this turnover can create higher transaction costs. ...

  • Apache Corporation Gets Bigger In 2010

    http://stocks.investopedia.com/stock-analysis/2010/DEC-Apache-Corporation-Gets-Bigger-In-2010-APA1214.aspx
    ... Apache made several large acquisitions in 2010, increasing its exposure to Egypt
    and the ... up 83 million BOE in proven and probable reserves in this transaction. ...

  • Use Married Puts To Protect Your Portfolio

    http://www.investopedia.com/articles/optioninvestor/080101.asp
    ... In any transaction, you have to gauge your exposure, or your risk. In the given
    example, you have a total cash outlay of $2,050 (excluding commissions). ...

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