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Transaction Risk |
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Transaction RiskThe risk of changes in the home currency value of a specific future foreign currency cash flow.Transaction Risk Similar MatchesTransaction 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. Opening transactionOpening transactionApplies to derivative products. (1)Buy or sell transaction that creates a position out of a flat one (writing an option short or buying an option long). Antithesis of closing transaction. (2) First transaction of the day in a stock. Transaction taxTransaction taxApplies mainly to international equities. Levies on a deal that foreign governments sometimes charge. Riskless transactionRiskless transactionA transaction that is guaranteed a profit, such as the arbitrage of a temporary differential between commodity prices in two different markets. The evaluation of whether dealer markups and markdowns in OTC transactions are reasonable. According to NASD, markups or markdowns should not exceed 5%. Interfund transactionsInterfund transactionsFinancial arrangements effected by payments made from one fund group (either Federal funds or trust funds) to another group. Further SuggestionsIntercompany transactionFederal intrafund transactions Transactions costs COD transaction Highly leveraged transaction (HLT) Intermediate transaction Intrabudgetary transactions Shared equity transaction Transaction cost Trust fund transaction Round trip transactions costs Transaction value Structured arbitrage transaction Closing transaction Spot transaction Transaction Transaction fee Taxable transaction Transaction loan Transaction Insured Trade Acceptance Locator (TITAL) Cash transaction Transactions motive Autonomous transaction Net transaction exposure Official reserve transactions |
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