Sentences with phrase «lower underlying asset»

If the market would be efficient this would be hard to explain since the lower underlying asset prices should already have reflected the bad news.

Not exact matches

Recovery is now in its ninth year with relatively slow underlying growth for demographic and technological reasons, very low unemployment and high asset prices.

Basically, in the High / Low options, you predict the final price of an underlying asset relative to its current price.

The only problem is that interest rates are so low now the risk embedded in the underlying asset pools are much greater than the interest rate compensating the investor for buying these securities.

In the case of the binary trading, except high or low options, the strike prices are set by the broker and even if you have a fair idea on how an underlying asset will behave, you can not place an order to be executed at certain price points.

Mortgages and education loans are generally seen as more favorable than other consumer loans since interest rates are generally lower, they may receive favourable tax treatment, and the underlying assets will likely appreciate over time.

Conversely, if the price of an underlying asset is expected to fall, some may sell the asset in a futures contract and buy it back later at a lower price on the spot.

Liquidity providers in option markets prefer to hedge mostly with other options, hedging residual greeks with other assets such as the underlying, volatility, time, interest rates, etc because trading costs are lower since the two offsetting options hedge most of each other out, requiring less trading in the other assets.

The fundamental strategy that underlies all value investing is this: buy assets at a price lower than what you think they're actually worth.

If you are more risk averse, and your portfolio is more heavily weighted towards U.S. - based investments, has lower currency volatility, or low correlation between the currency and the underlying asset return, you may consider having a lower proportion of currency hedged investments.

Identifying areas where the price of an underlying asset has been unjustifiably pushed to extremely low levels is the main goal of many technical indicators such as the relative strength index, the stochastic oscillator, the moving average convergence divergence and the money flow index.

I like the lower costs of the ETFs, but I have refrained from ETFs because I'm concerned that the share values may not always be aligned with the value of the underlying assets (because the ETFs can be traded like stocks all day long).

This portfolio invests in derivative instruments such as swaps, options, futures contracts, forward currency contracts, indexed and asset - backed securities, to be announced (TBAs) securities, interest rate swaps, credit default swaps, and certain exchange - traded funds that involve risks including liquidity, interest rate, market, currency, counterparty, credit and management risks, mispricing or improper valuation, low correlation with the underlying asset, rate, or index and could lose more than originally invested.

By contrast, there are other firms, such as Personal Capital and my firm, Rebalance IRA, where we have similar investment philosophies and similar use of technology, but we have real, live investment advisors who deal extensively with clients and match them with the right asset allocation, low - cost underlying portfolios, very low cost, and disciplined rebalancing, which is really an essential risk management and return tool.

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.

• Finally, we believe that the real estate industry is in a unique position to reduce greenhouse gas emissions through energy efficiency improvements that are low cost and that create value within the underlying asset.

My conclusion was that TFG trades at a discount because of it's egregious fee structure a — i.e. if you have the same underlying risk on two bonds and someone «steals» 20 % of your coupon then that bond should naturally trade at a discount... I chose to invest in CIFU as it consistently pays out 50 % of all free cash as dividend and reinvests the other 50 % in similar asset and its running at much lower cost base and REALLY is a pure play (i.e. no Asset Management assets)-- adding to that ISA eligible and CIFU stands out from my perspecasset and its running at much lower cost base and REALLY is a pure play (i.e. no Asset Management assets)-- adding to that ISA eligible and CIFU stands out from my perspecAsset Management assets)-- adding to that ISA eligible and CIFU stands out from my perspective.

Remember that the «toxic assets» held by banks represent pools of mortgages that have been cut up into dozens of individual pieces; the higher grade pieces having first claim to payments made on the underlying mortgages, and the lower grade pieces having claims to less likely payments.

This ratio may be higher or lower depending on the allocation of the portfolio's assets among the underlying Fidelity funds and the actual expenses of the underlying Fidelity funds.

Some structured products offer protection of the principal — when held to maturity, subject to issuer credit risk, thus offering a lower risk than investing in the underlying asset directly.

So unless a target fund is just using other mutual funds for their core holdings, the actual job of stock picking and market timing of the underlying assets is usually a lower priority.

I agree that market forces can affect the price of shares vs. the underlying asset value; it's interesting however that all except one of the ETFs is LOWER than the expect NAV based on the index performance.

These are not usually tradable as the guarantees on the policy are often much lower, and the discount between the surrender value and Asset Share (the true underlying value) is narrower.

The discount (futures price lower than spot price) indicates that the market participants are bearish on the underlying asset (BTC).

Binary options are a type of financial instrument that allows individuals to bet on whether the value of an underlying asset, such as a stock, bond or even bitcoin, will be higher or lower after a specific pre-determined time period.

This suggests that NTRs may offer a better option for investors who are concerned about rich public REIT valuations that may overstate underlying asset value, especially now, when traded REIT prices are at historic highs and yields are near historic lows.