Sentences with phrase «currency contracts»

One key difference between a currency option and a forward currency contract is that you are not obligated to take action with an option.

You can't «take delivery» of a foreign currency contract.

The newly formed banks doubled their money again and again by betting against the government on highly leveraged currency contracts, especially during the hyperinflationary years of 1992 - 94.

USDU uses derivatives (enters into forward currency contracts with counterparties), so deviations from spot exchange rates aren't out of the question.

In theory the performance of the hedge class NAV will track the currency of the base class NAV, in practice they will differ slightly due to factors such as the timing (the FX currency contracts used to provide the hedge will generally be executed using the NAV of the on the previous day) and costs of the hedging.

That reduces volatility but also results in foreign bond returns mimicking Canadian bonds (currency traders can chime in here because my understanding is that currency contracts take into account interest rate differentials, so hedging will eliminate the interest rate differential).

These products contain advanced currency contracts, interest receivable or payable on personal accounts and option contracts.

Single currency portfolios seek to profit by investing in a single currency through the use of short - term money market instruments, cash deposits, and derivatives, such as forward currency contracts, index swaps, and options.

Most of the money has been turned over to the oligarchic banks in settlement of «forward currency contracts» that are, in effect, no - lose gambles against the ruble.

But even for institutional investors, currency contracts have a cost.

According to the Internal Revenue Service, a section 1256 contract can include a foreign currency contract, a nonequity option, a regulated futures contract, a dealer equity option or a dealer securities futures contract.

The value of foreign currency denominated securities or foreign currency contracts is affected by the value of the local currency relative to the U.S. dollar.

Average Days to Maturity - Currency Contracts - The mean of the remaining term to maturity of the underlying currency forward contracts in the portfolio.

A forward currency contract is an agreement by two parties to transact in currencies at a specific rate on a future date and then cash settle the agreement with a simple exchange of the market value difference between the current market rate and the initial agreed - upon rate.

The S&P U.S. Treasury Bond 7 - 10 Year Index (TTM JPY) and the S&P U.S. Treasury Bond 7 - 10 Year Index (TTM JPY Hedged) both track the same bonds with returns represented in Japanese yen, while the latter is hedged in an effort to eliminate currency exposure through a one - month forward currency contract.

Multicurrency funds seek to profit by investing in an array of global currencies through the use of short - term money market instruments, cash deposits, and derivatives, such as forward currency contracts, index swaps, and options.

It is no surprise that currency - neutral funds could generate large taxable distributions — by their very nature, currency contracts are short - term instruments that trigger a taxable event at the time of settlement.

These four boxes on the 1099 - B only handle option, futures, and currency contracts.

There are several options to access emerging market debt investments including forward - currency contracts, local currency sovereign bonds, USD - denominated sovereign bonds and USD - denominated bonds of EM corporations.

Lower Historical After - Tax Returns in Taxable Accounts U.S. currency - hedged products have historically been notorious for distributing significant amounts of capital gains to its investors, mainly due to the «rolling» of their forward currency contracts.

For instance, currency futures typically need a margin that amounts to a low single - digit percentage of the currency contract's value.

These assets are separately compared against the S&P U.S. Treasury Bond 7 - 10 Year Index (TTM JPY), which is calculated in Japanese yen, and the S&P U.S. Treasury Bond 7 - 10 Year Index (TTM JPY Hedged), which tracks the same bonds with returns represented in Japanese yen but is hedged in an effort to eliminate currency exposure through a one - month forward currency contract.

The fund holds forward currency contracts to hedge much of the currency risk embedded in international bond investing.

The Fund continued to utilize forward currency contracts, which had a minor negative impact on the Fund's performance during the period.

The CME actually now gives credit to the International Commercial Exchange (not to be confused with ICE) for creating the currency contract, and state that they came up with the idea independently of the International Commercial Exchange.