How We Trade/Trade glossary

Trade Glossary

The terms you will meet in an offer, a contract and a letter of credit.

Glossary

Glossary of terms

CIF: Cost, insurance and freight. The seller pays freight and insurance to the named discharge port; risk passes at the load port.
FOB: Free on board. The seller delivers the cargo on board the vessel at the load port; the buyer pays freight from there.
SPA: Sales and purchase agreement. The contract that fixes product, specification, quantity, price and terms.
MT700 LC: A documentary letter of credit. The buyer’s bank pays the seller against compliant shipping documents.
MT760 SBLC: A standby letter of credit. A bank guarantee that pays if the buyer fails to perform.
ICPO: Irrevocable corporate purchase order. The buyer’s written statement of intent to purchase.
DIAC / DIFC: The Dubai International Arbitration Centre and the Dubai International Financial Centre, the arbitration venues named in our contracts.

How We Trade

Standing terms of sale and the shipping document set.

MT700 documentary LC and MT760 SBLC compared.

Independent inspection and typical specifications.

Answers to the questions buyers ask first.

Send the product, quantity, discharge port and delivery window. The trading desk replies with a formal offer after counterparty checks.