Trading TermsAnnealing (Simulated) Option Capital Market Noisy Signal Debit Spread Sight draft (sight bill)
Draft
A draft, commonly known as a bill of exchange, is an unconditional written order, signed by the drawer (usually the buyer) and addressed to the drawee (typically a bank), instructing the drawee to pay a specified amount to the payee (often the seller). There are two types of drafts: order drafts, which are payable to a specific person, and bearer drafts, which are payable to whoever holds the draft. The most common types of drafts are sight drafts, which are payable upon presentation, and time drafts, which are payable on a future fixed or determinable date.
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