user71649: Suppose bank A wants to send 100 USD to bank B using ripple. As per other answers, time taken for this transaction ranges between 4-7 seconds. But, what if the price of ripple drops drastically during this time frame.

user85: The market makers (which can be the banks themselves) price this slight risk into the rates they offer. Most of the time, this doesn't happen, and they make a slight profit. When it occasionally does happen, they may take a slight loss. Fortunately, the price can't move very much in so little time -- and, if necessary, the amount of time can be brought down to sub-second levels by using off-chain scaling schemes such as payment channels.

71649: <p>Suppose bank A wants to send 100 USD to bank B using ripple. As per other answers, time taken for this transaction ranges between 4-7 seconds. But, what if the price of ripple drops drastically during this time frame.</p>
 85: <p>The market makers (which can be the banks themselves) price this slight risk into the rates they offer. Most of the time, this doesn't happen, and they make a slight profit. When it occasionally does happen, they may take a slight loss. Fortunately, the price can't move very much in so little time -- and, if necessary, the amount of time can be brought down to sub-second levels by using off-chain scaling schemes such as payment channels.</p>
