What is Trade finance?

Answer 1

The voluntary exchange of goods and/or services for money or an equivalent good or service. In ancient times and frequently even now, trade was conducted through the bartering of goods. In developed economies, trades are usually made with an intermediary, especially money or credit. Trade is regulated by laws of the particular jurisdiction in which a trade is made. Common restrictions include prohibitions on selling stolen property or non-existent goods. Most states, however, have much more complex regulations for trade, depending on the complexity of goods and services traded in their jurisdiction. States also regulate trade between parties in different jurisdictions. For example, two countries may encourage trade between each other, or, more famously, discourage trade through quotas and/or tariffs. Finance trading is trading money for money, referring to currency trading where different currencies have different values.