Dubai wrote:Hi there.
What is meant by Intermediary bank and derivative trading.
I read these terms in the Financial Time but could not understand the meaning of these.
They are different than your investment banks.
A bank acts as a middleman between suppliers of funds and users of funds, substituting its own credit judgment for that of the ultimate suppliers of funds, collecting those funds from three sources: checking accounts, savings, and time deposits; short-term borrowings from other banks; and equity capital. A bank earns money by reinvesting these funds in longer-term assets.Read more:
http://wiki.answers.com/Q/What_is_an_intermediary_bank#ixzz1CIPqvRrL
Derivative trading are stoke market trading based on complicated financial instruments, like options and futures contracts, that derive their value by reference to an underlying asset or index.
Check it:
http://en.wikipedia.org/wiki/Derivatives_market
*It's wonderful to know that all languages are Greek if not understood.
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