What does ACTUAL EXPOSURE mean?

ACTUAL EXPOSURE meaning in Law Dictionary

The actual quantity of CREDIT DANGER publicity in a DERIVATIVE or economic transaction, typically shown as a MARKTOMARKET valuation. If DEFAULT takes place when actual visibility is positive towards the nondefaulting party, a credit loss occurs; if bad, no credit loss happens. Real publicity is one of two elements, along with FRACTIONAL PUBLICITY, into the determination of complete credit exposure. Also called GENUINE MARKET POSSIBILITY, REPLACEMENTCOST. See in addition POTENTIAL EXPOSURE.ACTUAL MARKETPLACE DANGER See ACTUAL EXPOSURE.ACTUALS bodily commodities, like GRAINS, SOFTS, metals, and energy, that are traded and delivered under COMMODITY DERIVATIVE agreements.