Sentences with phrase «delivery of the underlying asset»

With Saxo Bank you avoid physical delivery of the underlying asset on expiry of a Futures Contract, which is not supported.

The last trading day of oil futures, for example, is the final day that a futures contract may trade or be closed out prior to the delivery of the underlying asset or cash settlement.

The other party agrees to provide it or make delivery of the underlying asset.

Cash Settlement is a method of settling forward contracts or futures contracts by cash rather than by physical delivery of the underlying asset.

The intrinsic value is an easy calculation - the market price of an option minus the strike price - and it represents the profit that the holder of the option would enjoy if he or she exercised the option, took delivery of the underlying asset and sold it in the current marketplace.

Namely, backwardation is the idea that the price of a futures contract for some future delivery of the underlying asset is lower than the current spot price.

Futures traders are traditionally placed in one of two groups: hedgers, who have an interest in the underlying asset (which could include an intangible such as an index or interest rate) and are seeking to hedge out the risk of price changes; and speculators, who seek to make a profit by predicting market moves and opening a derivative contract related to the asset «on paper», while they have no practical use for or intent to actually take or make delivery of the underlying asset.

It requires the delivery of the underlying asset at a specified price and specified future date.

Not exact matches

Every futures contract has an underlying asset, the quantity of the asset, delivery location, and delivery date.

Each futures contract represents a specific amount of the underlying asset and futures can be either cash settled or come with physical delivery.