Sentences with phrase «loss of the underlying assets»

As an owner (equity investor), you participate directly in the gains or losses of the underlying asset.

Not exact matches

Trading in binary options is highly speculative, involves an outstanding risk of loss and is not suitable for everyone but only for those investors who: (a) understand and are willing to assume the economic, legal and other risks involved; (b) are financially able to assume the loss of their total investment; and (c) have the knowledge to understand binary options trading and the underlying assets.

Profit and loss are established when that underlying asset value shifts in relation to the position of the opening price.

If you sell a Naked Call or Put Option, you should have underlying assets or an open position in the futures market to protect you from an unlimited loss arising out of adverse price movements.

Risks associated with derivatives (including «short» derivatives) include losses caused by unexpected market movements (which are potentially unlimited), imperfect correlation between the price of the derivative and the price of the underlying asset, increased investment exposure (which may be considered leverage), the potential inability to terminate or sell derivatives positions, the potential need to sell securities at disadvantageous times to meet margin or segregation requirements, the potential inability to recover margin or other amounts deposited from a counterparty, and the potential failure of the other party to the instrument to meet its obligations.

CFDs are traded with an instrument that will mirror the movements of the underlying asset, where profits or losses are released as the asset moves in relation to the position the trader has taken.

This loss occurs when the price of the underlying asset equals the strike price of the options at expiration.

They only unwind and take losses if the market value of the underlying assets would drop down to a threshold level, say, around 90 % -94 % of par.

Assuming you measure your returns in Canadian dollars, that would result in a loss even if the price of the underlying asset were unchanged.

The net amount of interest payments from the underlying assets after bondholders and expenses are paid and after all losses are covered.

While many investors, realtors, and homeowners are familiar with a short sale transaction where the property is sold at a loss by bank with the institution taking a loss on the underlying note and or asset, most people don't realize that banks have been doing something very similar since the beginning of banking.

The CDS contract protects the buyer against the loss of principal in an underlying asset if a credit event occurs.

Your profit or loss is defined by the volume of your position and by whether the price of the underlying asset moves in your predicted direction.

After the bubble pops, it becomes a question of what the underlying assets can be liquidated for, allocating losses mercilessly according to the loan documents and bankruptcy priority.

Even if you don't have the money to buy the underlying asset itself, you can share in potential gains and losses on the value of that asset.

On the contrary, you will generally suffer a loss, if the market price of the underlying asset falls whilst your CFD long position is open.

On the contrary, you will generally suffer a loss, if the market price of the underlying asset rises whilst your CFD short position is open.

The special servicer ultimately enforced the security over the borrowers and proceeded to sell the underlying property assets over a period of time crystallising a significant capital losses for the issuer and noteholders.

Warning that the use of bitcoins as an investment tool is limited because there is no underlying asset and the virtual currency is subject to high volatility, the central bank said speculators are at risk, as they would have no legal recourse if there is a loss of confidence in the cryptocurrency or if they are victims of theft from hackers.