Sentences with phrase «of the underlying asset moves»

The position is profitable if the price of the underlying asset moves outside the two breakeven points.

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.

That means that when the price of the underlying asset moves up by 5 points, will make gain 1000 points.

Not exact matches

Jared does a very effective job of highlighting markets and assets that move well out of line with their underlying fundamentals, utilizing a quirky, self - deprecating writing style.

The scale of these recent moves in VIX overshadows the price action in the underlying assets.

The top stories of the day are the perfect place to look for underlying assets that are on the move, or likely to be.

At the far end of the curve, a delta of 1.0 would indicate a 1.0 % price move in the underlying asset's price should cause a 1.0 % move in option price.

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.

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.

Gamma is the rate of change in an option's delta per 1 - point move in the underlying asset's 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.

Option prices move with the movement of the underlying so in theory I could simply trade the option itself without every needing (or wanting) to hold shares in the underlying asset.

Other types of ETFs include leveraged ETFs, which move like a regular ETF with an added multiplier, or short ETFs, which perform well when the underlying asset tumbles.

Gamma is an estimate of the rate at which delta changes when the underlying asset moves by one point (in either direction).

If justifiable for other purposes, some people move assets into vehicles which restrict the ability of the spouse to access the underlying assets.

Trading of derivatives like futures also serves to move volatility away from the underlying asset and ultimately causes prices to become more predictable overall.

Instead, they are much worse as the binary options market moves with the price of the underlying asset.