Sentences with phrase «price of the underlying asset rises»

Thus, as the price of the underlying asset rises, the price of the call option premium will also rise.

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.

As owner of a long position, you will generally make a profit if the market price of the underlying asset rises whilst your CFD long position is open.

Not exact matches

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).

These are bullish bets — you believe that the price of the underlying asset will rise by a specified time.

If, on the other hand, the spread between a future traded on an underlying asset and the spot price of the underlying asset was set to widen, possibly due to a rise in short - term interest rates, then an investor would be advised to sell the spread (i.e. a calendar spread where the trader sells the near - dated instrument and simultaneously buys the future on the underlying).

This may occur, for example, at times of rapid price movement if the price for the underlying asset rises or falls in one trading session to such an extent that trading in the underlying asset is restricted or suspended.

Being Long in a CFD means you are buying the CFD's on the market by speculating that the market price of the underlying asset will rise between the time of the purchase and sale.