Compare all Forex Brokers in one place!

Q: do you know what a "money market" is?

Category: glossary , Asked by: A. Henderson from United States

A: A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year. Money market securities consist of negotiable certificates of deposit (CDs), bankers acceptances, U.S. Treasury bills, commercial paper, municipal notes, federal funds and repurchase agreements (repos). The money market is used by a wide array of participants, from a company raising money by selling commercial paper into the market to an investor purchasing CDs as a safe place to park money in the short term. The money market is typically seen as a safe place to put money due the highly liquid nature of the securities and short maturities, but there are risks in the market that any investor needs to be aware of including the risk of default on securities such as commercial paper. Visit Easy Forex

    what is the "parallel loan"?

    Category: glossary by J. B. From United States

    a "parallel loan " is A type of foreign exchange loan agreement that was a precursor to currency swaps. A parallel loan involves two parent companies taking loans from their respective national financial institutions and then lending the resulting funds to the other company's subsidiary. For example, ABC, a Canadian company, would borrow Canadian dollars from a Canadian bank and XYZ, a French company, would borrow euros from a French bank. Then ABC would lend the Canadian funds to XYZ's Canadian subsidiary and XYZ would lend the euros to ABC's French subsidiary. The first parallel loans were implemented in the 1970s in the United Kingdom in order to bypass taxes that were imposed to make foreign investments more expensive.

    Which foreign exchange platform has skillful support service, in your opinion?

    Category: general by E. S. From Liechtenstein

    We think the best place for your purpose is "FX Universal" - the support in "FX Universal" is excellent - they are so adept.

    please define "short-term investment fund"

    Category: glossary by R. F. From Gent, Belgium

    A type of fund that invests in short-term investments of high quality and low risk. The goal of this type of fund is to protect capital with low-risk investments while achieving a return that beats a relevant benchmark such as a Treasury bill index. Short-term investment funds include cash, bank notes, corporate notes, government bills and various safe short-term debt instruments. These types of funds are usually used by investors who are temporarily parking funds before moving them to another investment that will provide higher returns. These funds traditionally have low management fees, usually well below 1% per year.

Ask a question

Full name:
Email:
Country:
Human?
Question:
Featured Question
    do you know what the "underwriting" is?
    an "underwriting " is 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. The word "underwriter" is said to have come from the practice of having each risk-taker write his or her name under the total amount of risk that he or she was willing to accept at a specified premium. In a way, this is still true today, as new issues are usually brought to market by an underwriting syndicate in which each firm takes the responsibility (and risk) of selling its specific allotment. Visit Saxo Bank

    Want to know more about currency forex system? Educate yourself about forex services. In the following languages: russian, arabic, english and chinese. Regulated by CBRC(China), CFTC, OSC(CA) and ASIC(AU). Find 24/7 access or a mobile phone compatible interface.