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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With T
  5. Transaction Risk

Transaction Risk

Definition of 'Transaction Risk'

The risk that transactions already entered into, or for which the firm is likely to have a commitment in a foreign currency, will have a variable value in the home currency because of exchange rate movements.

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Related Terms

Factor Risk / Non-Factor RiskCredit RiskAccount SaleLotUp Tick TransationDiversifiable RiskEmerging MarketsMarket RiskPrice RiskRelevant RiskRisk LoverRisk PremiumRisk TransformationSecurity Market LineArbitrage Pricing TheoryBasis RiskBusiness RiskCapital Market LineConflict of PreferencesContractual Theory

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