The deposit market

The deposit market is a capital market without any securities. The deposit market is a trading arena for traders that wants to make fixed income agreements that can not be resold, non-tradable debt instruments.

The traders on the deposit market deals with money and the prices are listed as interest rates. The buying rate is lower than the selling rate on the deposit market. The seller on the deposit market wants to lend money and the buyer wants to borrow money, this explains why the buying rate is lower than the selling rate.

Agreements concluded in the deposit market is called deposits and are interest-bearing loans. The deposit market have maturities of between one day and one year, the maturity are agreed between the buyer and the seller. The largest traders in the deposit market are banks.