• user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:13508ad7ffc5786446a991dd240fb9e1' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h1>Bankers Acceptance</h1>', created = 1526900997, expire = 1526987397, headers = '', serialized = 0 WHERE cid = '1:13508ad7ffc5786446a991dd240fb9e1' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:23222a894e7894c39e6f641b51bfb0c2' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2>What is a Bankers Acceptance (BA)?</h2><br />A <b class=\"normalize\">bankers acceptance</b> (BA) is a time draft drawn on a bank, typically to finance an international&nbsp;transaction where&nbsp;one party&nbsp;is unwilling to offer their goods or services on credit.&nbsp; A <b class=\"normalize\">banker\'s acceptance</b> is issued by the customer and is an order for the bank to pay a provider of goods a certain amount of money at a predetermined date.&nbsp; Once the bank accepts this order, they are liable to pay the vendor of services.&nbsp; Basically, a banker\'s acceptance enables a customer to use the banks <a title=\"credit rating\" href=\"/bonds/credit-rating.html\">credit rating</a> to finance their trsanction.&nbsp; The customer will owe the face value of the BA to the bank before the BA will be redeemed by the seller.<br /><br /><h2>Selling Banker\'s Acceptance\'s On the Secondary Market</h2><br />Once the letter of credit has been signed by the bank on behalf of the buyer, the may either hold that BA in its portfolio or sell it on the <a title=\"secondary market\" href=\"/stocks/secondary-market.html\">secondary market</a> at a discount to <a title=\"par value\" href=\"/bonds/par-value.html\">par</a> (value of the BA when it becomes payable).&nbsp; Selling a bankers acceptance in the secondary market is essentially providing the borrower with funds from the money markets.&nbsp; Remember, there is a time value to money and therefore, the bank will have to discount the BA, similar to a <a title=\"discount notes\" href=\"/bonds/discount-notes.html\">discount note</a>.<br /><br />Bankers acceptance time drafts are a major part of the <a title=\"money market\" href=\"/bonds/money-market.html\">money markets</a>, providing liquidity to the seller and&nbsp;low risk&nbsp;interest income to the buyer.&nbsp; They are typically traded at a spread above the <a title=\"t-bills\" href=\"/bonds/treasury-bills.html\">T-bills</a> and this rate is referred to as Banker\'s Acceptance rates.<br />', created = 1526900997, expire = 1526987397, headers = '', serialized = 0 WHERE cid = '1:23222a894e7894c39e6f641b51bfb0c2' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:2fda152348bc4ae73408bf0b82608e9a' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide to navigating through the markets.</p><p>Tim is in the Timers Digest Top 10 Rankings for his newsletter and is the Author of \"The Secret Science of Price and Volume”. Ord also contributes to the Stocks &amp; Commodities Magazine.</p>', created = 1526900997, expire = 1526987397, headers = '', serialized = 0 WHERE cid = '1:2fda152348bc4ae73408bf0b82608e9a' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:4dd69529abed14a5c1c8f3ba7e22f8eb' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for every symbol on the Nasdaq, NYSE, and AMEX.</p><p>Use the fast forward and pause features to analyze your trading decisions with more precision.</p>', created = 1526900997, expire = 1526987397, headers = '', serialized = 0 WHERE cid = '1:4dd69529abed14a5c1c8f3ba7e22f8eb' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:151e49b034b3ac8a98c1331980da8b69' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2>Related Videos</h2>', created = 1526900997, expire = 1526987397, headers = '', serialized = 0 WHERE cid = '1:151e49b034b3ac8a98c1331980da8b69' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:e6ff5fe7efa34d641d697991ec512c61' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2>Related Articles</h2>', created = 1526900997, expire = 1526987397, headers = '', serialized = 0 WHERE cid = '1:e6ff5fe7efa34d641d697991ec512c61' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '4:64dc950e564b7bb494892459d2858add' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<div class=\"left\">\n <p>copyright &copy; 2011 MYSMP.com. All rights reserved.</p>\n <a href=\"/\">Home</a> • <a href=\"/advertise\">Advertise</a> • <a href=\"/sitemap\">Sitemap</a> • <a href=\"/privacy-policy\">Privacy Policy</a>\n</div>\n\n<div class=\"right\">\n <p>Designed &amp; Developed by: bxCreative.com: <a target=\"_blank\" href=\"http://bxcreative.com\">Web design</a></p>\n</div>', created = 1526900997, expire = 1526987397, headers = '', serialized = 0 WHERE cid = '4:64dc950e564b7bb494892459d2858add' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:ef414e50ef3bcd60831c79a8ccac7f37' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2 class=\"pane-title\"><a href=\"/investment-articles\">Investment Articles</a></h2><h2 class=\"pane-title\"><a href=\"/premium-services\">Premium Services</a></h2> <h2 class=\"pane-title\"><a href=\"/free-offers\">Free Offers</a></h2> <h2 class=\"pane-title\"><a href=\"/video\">Videos</a></h2>', created = 1526900997, expire = 1526987397, headers = '', serialized = 0 WHERE cid = '1:ef414e50ef3bcd60831c79a8ccac7f37' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:7ab206dca588aa9858fab14b55f27503' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>16192 Coastal Highway<br />\nLewes, Delaware 19958</p>\n', created = 1526900997, expire = 1526987397, headers = '', serialized = 0 WHERE cid = '1:7ab206dca588aa9858fab14b55f27503' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:fb9bc3d8197c3f70b5a896cc8bae29d6' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<a href=\"/\"><img src=\"/sites/all/themes/bx/images/logo.png\" /></a>', created = 1526900997, expire = 1526987397, headers = '', serialized = 0 WHERE cid = '1:fb9bc3d8197c3f70b5a896cc8bae29d6' in /var/www/html/mysmp/includes/cache.inc on line 109.

Bankers Acceptance

What is a Bankers Acceptance (BA)?


A bankers acceptance (BA) is a time draft drawn on a bank, typically to finance an international transaction where one party is unwilling to offer their goods or services on credit.  A banker's acceptance is issued by the customer and is an order for the bank to pay a provider of goods a certain amount of money at a predetermined date.  Once the bank accepts this order, they are liable to pay the vendor of services.  Basically, a banker's acceptance enables a customer to use the banks credit rating to finance their trsanction.  The customer will owe the face value of the BA to the bank before the BA will be redeemed by the seller.

Selling Banker's Acceptance's On the Secondary Market


Once the letter of credit has been signed by the bank on behalf of the buyer, the may either hold that BA in its portfolio or sell it on the secondary market at a discount to par (value of the BA when it becomes payable).  Selling a bankers acceptance in the secondary market is essentially providing the borrower with funds from the money markets.  Remember, there is a time value to money and therefore, the bank will have to discount the BA, similar to a discount note.

Bankers acceptance time drafts are a major part of the money markets, providing liquidity to the seller and low risk interest income to the buyer.  They are typically traded at a spread above the T-bills and this rate is referred to as Banker's Acceptance rates.
Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

Tradingsim.com
Day Trading Simulator

Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

Send this article to a friend.

Enter multiple addresses on separate lines or separate them with commas.