What does exposure mean?
Exposure has two meanings in the financial field. The first meaning of exposure is openness, that is, buying or selling a currency. For example, exposure of $500,000 means buying or selling $500,000.
The second meaning applies to risk analysis. For example, there is a bank acceptance bill exposure, which means that the drawer pays the deposit according to the deposit ratio indicated on the bill, and the remaining part is provided by the accepting bank to the drawer. This is the risk exposure of bank acceptance bills. If the enterprise accepts 100% mortgage or pledge and has no capital exposure, there is also an exposure credit line. There is a formula for calculating the exposure credit limit: exposure credit limit.
For example, if a bank gives an enterprise a credit line of 6.5438+0 million, and the enterprise pays 80% of the deposit to open a bank acceptance bill, then the remaining 20% is an open credit line. If an enterprise can cover its total credit limit with mortgage or pledge or guarantee, it is also not exposed, which is called non-open credit and belongs to low-risk business.
The same explanation of exposure can also be applied to other fields, such as futures. This is the exposure rate. I hope it helps you.