Transaction risk refers to the possibility that economic entities will suffer losses due to exchange rate changes between foreign currency and local currency, and between foreign currency and foreign currency in the transaction of calculating receipts and payments in foreign currency.

Trading risk usually occurs in the following situations:

First, in the import transaction of goods and services, if the exchange rate rises when the foreign currency is actually paid, the importer will pay more local currency or other foreign currencies; Or conversely, the situation of exporters from Dallas to the auditorium is just the opposite, that is, the risk of foreign exchange trading under the current account.

Second, in capital export, if the exchange rate of foreign currency creditor's rights and debts is lower than that of creditor's rights and debts, the creditors will have to recover less local currency or other foreign currencies. The situation of capital input is just the opposite, that is, the risk of foreign exchange trading under capital.

Third, foreign exchange banks holding long or short positions in intermediate foreign exchange transactions may also suffer losses due to exchange rate changes. In the daily foreign exchange trading business, foreign exchange banks will inevitably have net long positions or net short positions in certain currencies. If the exchange rate of currencies holding long positions falls and the exchange rate of currencies holding short positions rises, foreign exchange banks will suffer losses when selling long positions and buying short positions in the future.