Sentences with phrase «potentially unlimited loss»
The authors find that the buy — write strategies» risk - adjusted performance was earned from a combination of a skewness premium, paid to the option writers for assuming the tail risk of potentially unlimited loss, and the reduction in volatility from the hedge of the buy - and - hold security's beta exposure.
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People face potentially unlimited losses with CFDs if they are on the wrong side of a bet on a price movement and cryptocurrencies are notoriously volatile.
That would help protect Interactive Brokers in case bitcoin futures skyrocket, causing potentially unlimited losses among «short» traders betting on a price fall.»
If un-hedged, written calls expose the Fund to potentially unlimited losses.
People face potentially unlimited losses with CFDs if they are on the wrong side of a bet on a price movement and cryptocurrencies are notoriously volatile.
Not exact matches
The Funds could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited.
A fund could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited.
With short sales, losses are potentially unlimited and the expenses involved with the short strategy may impact the performance of the Fund.
The Funds could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited.
An investor could suffer losses related to their derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited.
Yes a good example of when someone takes a gamble on the direction of the stock, they could have gambled on going long or going short, the only difference the losses on going short are potentially unlimited.
The Fund could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited.
A fund could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited.
Short positions lose value as security prices increase, which may potentially expose the ETF to unlimited losses resulting in a total loss of investment.
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.