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Financial term simplified for traders to gain

Posted By On 11/10/2008 09:51:00 AM Under
1. Financial jargon keeps troubling the public and one such term is LIBOR which is encountered in a trader life. To make it simple I will state that LIBOR is the London Interbank Offered Rate and the same is used to measure the rate that banks assess other banks for loans i.e. one can say that the rate being charged to the banks when they assess the loans.

3. The corollary to above fact is that when LIBOR rises the same is bad for industry as credit becomes costlier and live example is ICICI Bank which suffered due to credibility of its financial system and thus one can say that the same also depicts confidence in financial system.

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