What's my exposure to currency risk between quoting a price and the actual payment date on a 60-day term deal?
Short answer: On an extended payment term like 60 days, currency exchange rate movements between the time you quote and the time you're actually paid can meaningfully affect what that payment is worth in your own currency — for a genuinely significant transaction, consider whether the price is quoted and settled in a currency you're comfortable with, or whether a forward exchange contract or similar hedging tool is worth the added complexity to protect against unfavorable movement.
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List Free →Why extended payment terms amplify currency risk
A short gap between quoting and payment limits how much a currency can realistically move, but 60 days gives meaningfully more time for exchange rates to shift, potentially eroding — or occasionally improving — the actual value you receive compared to what you calculated at the time of quoting.
What determines your actual exposure
If the deal is priced and settled in your home currency, the buyer bears the currency risk instead of you — if priced in the buyer’s currency or a third currency, you’re the one exposed to movement, which is an important detail to clarify before agreeing to extended terms.
Whether hedging is worth the complexity
For a large, currency-exposed transaction with extended terms, a forward exchange contract or similar hedging tool can lock in your effective exchange rate in advance — this adds complexity and sometimes cost, but for a genuinely significant deal, it can be worth avoiding the uncertainty of relying on favorable currency movement.
How ScrapTrade Makes This Easier
Discussing currency and payment terms clearly with international buyers on ScrapTrade before agreeing to extended payment terms helps you understand your actual currency exposure upfront.
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