The maximum loss suffered from a default by a counterparty.

Similar financial terms

Accounting exposure
The change in the value of a firm's foreign currency denominated accounts due to a change in exchange rates.

Translation exposure
Risk of adverse effects on a firm's financial statements that may arise from changes in exchange rates.

Transaction exposure
Risk to a firm with known future cash flows in a foreign currency that arises from possible changes in the exchange rate.

Operating exposure
Degree to which exchange rate changes, in combination with price changes, will alter a company's future operating cash flows.

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Trading Halt

The temporary suspension of trading in a quoted security, usually for 30 minutes, while material news from the issuer is being disseminated over the news wires. A trading halt gives all investors equal opportunity to evaluate news and make buy, sell, or hold decisions on that basis. A trading halt may also be imposed for purely regulatory reasons, either by the SEC, the FSA, any index or other reg ...

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