Trading TermsCurrencies Open policy (OP) Position Management Ratio Net Asset Value Time draft (time bill) Equity
Demand guarantee
A demand guarantee, often issued by a bank, is a form of guarantee that allows the beneficiary to receive payment simply by making a demand. This differs from conditional or suretyship guarantees, which require the beneficiary to provide evidence of the principal's default. As a result, demand guarantees carry a higher level of risk as the beneficiary may make an unjustified demand. However, they can provide a quick and efficient way for parties to secure payment.
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