Measurement of Transaction Exposure Transaction exposure measures gains or losses that arise from the settlement of existing financial obligations in a foreign currency. Transaction exposure arises from e.g. --1 Purchasing or selling on credit where prices are stated in foreign currency --2 Borrowing or lending in a foreign currency --3 Entering a forward contract Transaction exposure is the chance of either a loss or a gain!Measurement of Transaction Exposure Transaction exposure measures gains or losses that arise from the settlement of existing financial obligations in a foreign currency. Transaction exposure arises from e.g. --1 Purchasing or selling on credit where prices are stated in foreign currency --2 Borrowing or lending in a foreign currency --3 Entering a forward contract Transaction exposure is the chance of either a loss or a gain!