I've been hearing a lot about LOIs. The amateurs get a little confused because when they attempt to google about a LOI in trading, there is a legitimate result! Yet they also come across LOI in its phony jargon conjured by the dopey con-men.
So whats the real deal and what isn't?
The real LOI - Letter Of Indemnity
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LOI in the real world of physical trading stands for a Letter Of Indemnity.
There are 2 types of such LOIs.
One is used for the discharge (and in some instances release) of physical cargo because of the absence of shipping documents.
One is used in L/Cs to make payment against in the absence of shipping documents, normally addressed to the bank issuing the L/C.
Nobody in the real world of physical trading references a LOI as a Letter of Intent or Letter of Interest.
No such procedure or step is ever needed or required to initiate commercial interest.
Its easy to tell the real from the fakes.
Examples to follow.
Policing fraudulent physical petroleum transactions across the globe, they are all over the net.
