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Exposure netting |
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Exposure nettingOffsetting exposures in one currency with exposures in the same or another currency, when exchange rates are expected to move in such a way that losses or gains on the first exposed position should be offset by gains or losses on the second currency exposure.Exposure netting Similar MatchesExchange rate exposureExchange rate exposureThe extent to which the stock-market value of a firm varies with changes in exchange rates. Also called economic exposure. Net transaction exposureNet transaction exposureOffsetting inflows against outflows in a given currency to determine extent of exposure to risk. Economic exposureEconomic exposureThe extent to which the value of a firm will change because of an exchange rate change. Net currency exposureNet currency exposureExposure to foreign exchange risk> after netting all intracompany cash flows. Transaction exposureTransaction exposureRisk to a firm with known future cash flows in a foreign currency, that arises from possible changes in the exchange rate. Related: Translation exposure. Further SuggestionsEconomic exposureexposure Exposure Balance sheet exposure |
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