With these options, money is made when the price
of the underlying asset increases in value.
A kind of binary option that pays out if the price
of the underlying asset increases to above the option's strike price.
There is one other factor that can increase the odds that the event we want to happen will occur — if the volatility
of the underlying asset increases.
Not exact matches
Blockchain technology could also
increase investor confidence in products whose
underlying assets are opaque or where property rights are made uncertain by the role
of central authorities, the report says.
This might be a result
of the
increasing price
of the
underlying asset (ceteris paribus, as the price
of bitcoin rises, so would the volume
of exchange).
A bond fund with a longer average maturity will see its net
asset value (NAV) react more dramatically to changes in interest rates as the prices
of the
underlying bonds in the portfolio
increase or decline.
Disappearance
of markets and sharply
increased doubts about valuations both
of structured products and the
underlying assets are continuing to affect the credit markets.
Ownership
of the
asset (in this case silver) never lies in the hands
of the trader, they are simply speculating on whether the price
of the
underlying asset will
increase or decrease.
Note that margin requirements usually
increase proportionately to the value
of the
underlying trade
asset.
Underlying Price Risk: The price of ETFs will fluctuate, reflecting changes in the value of the underlying assets or derivatives, so the value of your investment may increase or
Underlying Price Risk: The price
of ETFs will fluctuate, reflecting changes in the value
of the
underlying assets or derivatives, so the value of your investment may increase or
underlying assets or derivatives, so the value
of your investment may
increase or decrease.
If market participants anticipate an
increase in the price
of an
underlying asset in the future, they could potentially gain by purchasing the
asset in a futures contract and selling it later at a higher price on the spot market or profiting from the favorable price difference through cash settlement.
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.
Our clients can now speculate purely on the price movement
of the
underlying asset, utilising leverage to
increase their positions if they wish to», she added.
With
increasing distance from the
underlying asset these actors relied more and more on indirect information (including FICO scores on creditworthiness, appraisals and due diligence checks by third party organizations, and most importantly the computer models
of rating agencies and risk management desks).
Variable Life Insurance (VUL) provides the flexibility
of Universal Life, but also the potential to
increase your cash value by allocating your money into various sub-accounts that invest directly in the
underlying asset class, similar to mutual funds.
As with all CEF investments, there is an additional potential for profit besides the
increase in value
of the
underlying assets per share (also called Net
Asset Value or NAV), which is the improvement
of their market price relative to their NAV.
If the price
of the
underlying asset continues to
increase, the potential profit is unlimited.
Mortgage securities and collateralized mortgage obligations (CMOs) are subject to prepayment risk and the risk
of default on the
underlying mortgages or other
assets; such derivatives may
increase volatility.
Call option — this is the option an investor uses when they want to predict an
increase in the value
of an
underlying asset.
The combination
of a measurable
increase in ETF trading volumes, disproportionately small corresponding net cash flows, and consistently tighter bid - ask spreads in large ETFs than in the
underlying assets suggests that investors who used ETFs to reduce or add to market exposure benefitted from liquidity that was additive to the
underlying asset markets.
They were holding minimum reserves because a guy named Geithner at the New York Federal Reserve ruled that since the values
of the
underlying assets were
increasing, they could consider the loans practically «riskless» as long as they carried default insurance.
Variable Life Insurance (VUL) provides the flexibility
of Universal Life, but also the potential to
increase your cash value by allocating your money into various sub-accounts that invest directly in the
underlying asset class, similar to mutual funds.
Variable Life Insurance (VUL) provides the flexibility
of Universal Life, but also the potential to
increase your cash value by transferring your money into different sub-accounts directly into the
underlying asset class, similar to mutual funds.
When roadmap deadlines are hit, presentations take place, and utility has
increased the value
of the
underlying asset tends to
increase in value in comparison to BTC and other altcoins.
The update comes «against a background
of increased enquiries to BaFin regarding the areas
of securities and
asset management,» the note states, with potential ICO operators enquiring «whether the
underlying tokens, coins or cryptocurrencies behind so - called ICOs are viewed as financial instruments within the area
of securities supervision.»