Overview

Whether you are involved in importing or exporting Trade Finance Global by Amro Capital Holding Inc. can handle documentary collections, documentary credits, guarantees and standby L/Cs online. It supports all trade finance instruments, as well as full self-service reporting for traceability at an aggregated and individual transaction level.

AMRO TRADE FINANCE GLOBAL offers a secure, user-friendly and Single Point of Entry for all your trade finance needs, globally.

Amro Trade Finance Global gives you:
♦ Access to all your trade finance information, anywhere, anytime
♦ A complete overview of all your trade finance transactions – globally

Back-to-back letters of credit are actually made up of two distinct LoCs, one issued by the buyer’s bank to the intermediary and the other issued by the intermediary’s bank to the seller. With the original LC from the buyer’s bank in place, the broker goes to his own bank and has a second LC issued, with the seller as the beneficiary.
The seller is thus ensured of payment upon fulfilling the terms of the contract and presenting the appropriate documentation to the intermediary’s bank. In some cases, the seller may not even know who the ultimate buyer of the goods is.
Back-to-back LCs essentially substitute the two issuing banks’ credit to the buyer’s and intermediary’s and thus help facilitate trade between parties who may be dealing from great distances and who may not otherwise be able to verify on e another’s credit.

There is a huge variety of financial instruments to choose from when you decide to start trading.

Stocks
A stock is a form of security that represents proportionate ownership of a company. When you purchase a stock, you receive a share of the equity. If the company is privately held, the equity deals are arranged directly between the parties. When a company wants to attract additional capital, it can decide to go public. This means that it should undergo an IPO (a process of Initial Public Offering) and if it is successful its shares can be listed for trading on an exchange. Once this is successful, the shares become available to the general public for trading. The market where the IPO happens is known as the primary market. The market where normal trading activity happens is known as the secondary market.

Derivatives
A derivative is commonly described as a financial instrument that derives its value from another security. This other security is referred to as an underlying asset. The underlying asset can be any other financial instrument: a stock, commodity, currency, etc.

Exchange-Traded Fund (ETF)
An Exchange-Traded Fund (ETF) is another popular exchange-traded security. An ETF is an alternative investment vehicle that is traded like a stock that tries to replicate a market index. It consists of a basket of securities based on an index. The basket can consist of stocks, commodities, or even bonds. For example the SPDR S&P 500 ETF (known as SPY) is an ETF that tracks the S&P 500 Index and the SPDR Gold Trust ETF (known as GLD) is an ETF which tracks the price of Gold. What is specific to ETFs is that the fund has actual holdings of the assets which it is set to track. For example, the SPY has holdings of the stocks that are constituents of the S&P 500 index and the GLD has holdings of physical gold. This means that when you buy an ETF you are actually getting hold of a fraction of the underlying assets.

A Fund of Fund is a mutual fund scheme that invests in other mutual fund schemes. In this, the fund manager holds a portfolio of other mutual funds instead of directly investing in equities or bonds. A given FoF may invest in a scheme of the same fund house or another fund house. The portfolio is designed to suit investors across risk profiles and financial goals. The investors get an opportunity to benefit from the diversification as a result of investing in numerous fund categories.

The FoF can be domestic as well as overseas. In the case of foreign FoF, the fund manager invests in units of offshore mutual fund schemes. He/she ensures that the target fund’s investment philosophy and risk profile matches with that of the fund’s mandate. The main objective is to create wealth over the long run.

Back-to-back commitments are used to mitigate risk on the part of the lender. For example, if a bank loans money with the agreement that a second bank will buy out that loan at a later date, then the bank issuing the loan mitigates risk by only being liable for a short period of the life of the loan; the liability will pass to the bank buying out the loan after a predetermined period.

In cases where a back-to-back commitment is used to roll a construction loan into a mortgage loan, the lender is mitigating risk by gaining access to collateral that can be used to recover losses in the event that the borrower defaults. A construction loan doesn’t give the lender much access to collateral, but rolling that loan into a mortgage loan once construction has been completed and certain conditions are met allows the lender access to the new structure as collateral if the borrower defaults. However, because they are used to mitigate risk in cases where lenders don’t have ready access to collateral, back-to-back commitments are usually only used in construction loans. Since the savings and loan crisis, the regulatory framework that allows for their use remains in place.

Call deposit accounts provide the benefits of an interest-bearing account without the risk of withdrawal penalties. The rate of interest a call deposit account pays depends on the amount of money in the account, a system commonly referred to as banded interest rates.

Along with higher interest rates and a guaranteed level of liquidity, call deposit accounts can be accessed at any time based on the availability of online, mobile, or phone banking as well as automated teller machine (ATM) access. Remote check deposits or direct deposit may be available depending on the precise services offered by the institution.

Most withdrawals from call deposit accounts do not require prior notice unless they are over a certain amount. Based on the amount of funds an institution must maintain as a reserve, notice may be required for large cash withdrawals.

Additionally, institutions may have daily withdrawal limits designed to lower the risk of losses in the case of identity theft. Transactions above the amount as stipulated by the institution may require notice, though this provision applies to traditional checking and savings accounts as well.

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