Sentences with phrase «rate of underlying assets»

A 2x bull ETF is constructed to grow (or decline) at double the rate of the underlying assets.

This also implies that the value of the ETF will fall at double the rate of underlying assets.

Not exact matches

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.

Whether we look at housing, mortgage backed securities, or stocks, the underlying reason for a decline in asset prices is the same - the prices are too elevated, relative to the stream of cash flows they will produce, to achieve an acceptable rate of return.

In finance, a derivative is a contract that derives its value from the performance of an underlying asset or other entity (such as an index or interest rate).

You will find many different underlying assets here along with great rates of return.

For example, many brokers will not offer the highest rates of returns on their most popular underlying assets.

But 24Option actually has some of the highest return rate on this popular underlying asset at 88 percent per successful trade.

Gamma measures the rate of change of an option's delta, which is the difference between an option's price change compared to price change of the underlying asset.

They are murky because they don't report the value of the underlying assets, but only the smoothed value of assets, and the rate that they are currently crediting.

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.

A total return swap is a swap agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains.

The underlying assets, in this case, can be stocks, commodities, indices, currencies, rate of interest or exchange rates.

The underlying assets, in this case, can be stocks, commodities, indices, currencies, rate of interest

Changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index, and the Portfolio could lose more than the principal amount invested.

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).

Some of these are stable, such as the price of the underlying asset, the strike price and the current interest rate.

Market conditions and changes in the underlying assets may affect the rate of return of the certificate.

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

Derivatives are investments in which the value is «derived» from the value of an underlying asset, reference rate, or index.

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.

Short - and long - term investments consist of auction rates securities, which have underlying instruments that consist primarily of corporate notes and asset backed securities, and are rated AA or higher at the time of purchase.

On page 12 of the Office of Thrift Supervision's Selected Asset and Liability Price Tables (As of March 31, 2011), shows a WAC of 5 % with a base pre-payment rate of 17 % (WAC is the weighted average coupon of the underlying collateral or mortgages.

The cash value of the contract after that would depend on how a total withdrawal rate of about 8 percent (payout plus product expenses) affected the value of the underlying account assets.

These formulae imply positive and negative jumps in the price of an underlying asset have separate distributions (arrive at different rates).

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

These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index.

A swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains.

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).

The rate of principal payment on MBS and ABS generally depends on the rate of principal payments received on the underlying assets which in turn may be affected by a variety of economic and other factors.

If the underlying mortgage assets experience greater than anticipated prepayments of principal, a fund may fail to recoup some or all of its initial investment in these securities even if the security is in one of the highest rating categories.

The bonus rate is decided after considering a variety of factors such as the return on the underlying assets, the level of bonuses declared in previous years and other actuarial assumptions (especially future liabilities and anticipated investment returns), as well as marketing considerations.

By contrast, returns typically associated with real estate equity strategies are mostly «back - ended» and are dependent on asset appreciation, capitalization rate compression, cash flow growth, aggressive refinancing and / or sale of the underlying property.

Instead of focusing primarily on personal income and credit score, the company focuses on the cash flow of the investment properties — allowing more flexibility on rates as it becomes more comfortable with the underlying collateral (the asset) itself.