Sentences with phrase «hedging purposes»
The phrase "hedging purposes" refers to actions taken to reduce the risk or uncertainty associated with an investment or a financial transaction. It involves measures that can help protect against potential losses or unexpected events. Full definition
This type of binary option facility can be particularly useful if you are using binaries options for hedging purposes on other trading strategies.
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While this gold can and has been leased to bullion banks for commercial purposes (often for hedging purposes by the mining industry), this practice has diminished significantly in recent years due to compliance and regulatory considerations affecting the practice and behavior of bullion banking.
Even allowing for the fact that some paper trading, as on COMEX, is for normal commercial hedging purposes, the extraordinary discrepancy suggests to us that, as on COMEX, pure speculation, day trading, front running, and other forms of gaming exist on a very large scale.
To reduce the indirect effects of such receivership on other institutions, it would be helpful to legislate a restriction on the use of credit default swaps (essentially insurance contracts against the failure of a company's bonds), requiring that such swaps may be used for bona - fide hedging purposes only.
In contrast, the banking sector had a net foreign currency liability position before taking into account the use of derivatives for hedging purposes and a net foreign currency asset position of close to zero after accounting for the use of hedging derivatives.
Clearing and Custody offered on the above in addition to Futures and Options on all major exchanges and FX for hedging purposes
As at the end of March 2013, international investment position (IIP) data indicated that Australian entities overall had a net foreign currency asset position equivalent to 27 per cent of GDP before taking into account the use of derivatives for hedging purposes (ABS 2013a).
The general government sector — which consists of national, state and local governments — had a net foreign currency asset position equivalent to around 3 per cent of GDP as at the end of March 2013, before taking into account the use of derivatives for hedging purposes (Table 2).
Option writing can also be used for hedging purposes and reducing risk.
Additionally, for hedging purposes, the Fund may engage in short sales of securities, including short sales of securities the Fund does not own.
Futures contracts trade on the commodity futures exchanges and you need an account with a commodity futures broker to use futures for trading or hedging purposes.
We could speculate on the amount the US Government takes in, and the IRS could use it for hedging purposes.
The fund seeks to achieve its investment objective by investing directly, or indirectly through exchange - traded funds («ETFs»), in equity securities that are represented in the S&P 500 Index, exchange - traded long - term put options on the S&P 500 Index for hedging purposes, and buying and selling exchange - traded put and call options on various equity indices to generate additional returns.
Northern Global Tactical Asset Allocation Fund (BBALX) has added hedging via derivatives to the list of its possible investments: «In addition, the Fund also may invest directly in derivatives, including but not limited to forward currency exchange contracts, futures contracts and options on futures contracts, for hedging purposes.»
Changes in the value of investments entered for hedging purposes may not match those of the position being hedged.