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Q: what is an "assignment of proceeds"?

Category: glossary , Asked by: F. Walton from Livonia, United States

A: "assignment of proceeds " is A document transferring all or part of the proceeds from a letter of credit to a third party beneficiary. To receive an assignment of proceeds, the beneficiary of a letter of credit is required to submit, in writing, a request to the bank to assign the funds to a different person or company. Once approved, the bank will disperse the funds accordingly, pending the fulfillment of any requirements set forth in the letter of credit. However, if the principal party does not meet the obligations outlined in the letter of credit, no assignment will take place. Visit FXCM

    please tell me what a "low / no documentation loan" is

    Category: glossary by H. F. From Lille, France

    "low / no documentation loan " is A category of loans which generally fall into the Alt-A sector of mortgage lending that gives borrowers the ability to state a limited amount of information on their mortgage application. Limited income, employment or asset information may be required depending on the specific type of low documentation loan; however, in some cases, the borrower may not need to provide them at all. There are subtle differences between various low documentation and no documentation loan programs offered by mortgage lenders. Alt-A mortgage lending typically depends heavily on a borrower's credit score (FICO score) and the mortgage's loan to value ratio (LTV) in determining the borrower's ability to repay the mortgage. A borrower should not be steered to a low documentation or no documentation loan by a mortgage lender in order to speed up the loan application and approval process. Low and no documentation loans usually have a higher interest rate than what can be obtained when income and assets are listed and verified. A little work in gathering information can save a lot of money over the long-term.

    please define the "straddle"

    Category: glossary by O. Evans from Douglas, United Kingdom

    An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date. Straddles are a good strategy to pursue if an investor believes that a stock's price will move significantly, but is unsure as to which direction. The stock price must move significantly if the investor is to make a profit. As shown in the diagram above, should only a small movement in price occur in either direction, the investor will experience a loss. As a result, a straddle is extremely risky to perform. Additionally, on stocks that are expected to jump, the market tends to price options at a higher premium, which ultimately reduces the expected payoff should the stock move significantly.

    any site with enhanced trade with USD/CHF that you can suggest for me

    Category: money by Kennedy A. From Belgium

    If you fancy a site which includes trade GBP/RON, we definitely advice you to explore "Oanda". They've got a truly lovely site, and it'll totally fit your preference. Anyone that wants buy and sell USD/HUF, GBP/RON or JPY/RUB (or any other currencies from a large list of available options) (and in the proper age) can use this site.

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    please define the "earned income credit"
    "earned income credit " is A tax credit for low-income workers. Even workers whose incomes are too small to have paid taxes can get EIC. This credit varies with family size, income and the number of children. Visit CMC Markets

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