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The terms nostro and vostro are used, mainly by banks, when one bank keeps money at another bank. Both banks need to keep records of how much money is being kept by one bank on behalf of the other. In order to distinguish between the two sets of records of the same balance and set of transactions, banks refer to the accounts as nostro and vostro. A vostro account is the same as any other bank account. The nostro account is a way of the bank whose money it is, keeping track of how much is being held by the other bank.
A keeping a record of money held by a bank in country B, in the currency of country B. A vostro account will be in the local currency of the bank where the money is being held i. B’s record of the money kept by the bank from country A with it. For these accounts, the domestic bank is acting like a custodian or managing the accounts of a foreign counterpart. These accounts are utilised for facilitating the settlements of forex and foreign trades.
A client bank elects to open an account with another facilitator bank. A bank counts a nostro account with a credit balance as a cash asset in its balance sheet. Nostro accounts are mostly commonly used for currency settlement, where a bank or other financial institution needs to hold balances in a currency other than its home accounting unit. USD, but banks in A will only handle payments in AUD. So FNB of A opens a USD account at foreign bank Credit Mutuel de B, and instructs all counter-parties to settle transactions in USD at “account no. 123456 in name of FNBA, at CMB, X Branch”. In practice this is rarely used, the main exception being complex syndicated financing.
A loro is our account of their money, held by you. This page was last edited on 31 May 2018, at 04:54. Jump to navigation Jump to search This article is about the occupation. For the practice, see Day trading. This article needs additional citations for verification.
A day trader is a trader who adheres to a trading style called day trading. There are two types of day traders: institutional and retail. Both institutional and retail day traders are described as speculators, as opposed to investors. Institutional day traders work for financial institutions and have certain advantages over retail traders due to their access to more resources, tools, equipment, large amounts of capital and leverage, large availability of fresh fund inflows to trade continuously on the markets, dedicated and direct lines to data centers and exchanges, expensive and high-end trading and analytical software, support teams to help and more. Retail day traders use retail brokerages and generally trade with their own capital.
Auto traders use computer programs and other tools to enter trading orders automatically. Because this all happens with the help of a computer algorithm, it is also called algorithmic trading. Day traders’ objective is to make profits by taking advantage of price movements in highly liquid stocks or indexes. The more volatile the market, the more favorable the conditions for the day trader, regardless of the longer-term direction in the market. Day trading is associated with risk of capital loss.