Sentences with phrase «risk unlimited loss»

After that, institutions have no obligation to conduct an investigation, and «you risk unlimited loss.»

If you fail to contact the card issuer within 60 days of the first incorrect account statement, you risk unlimited loss to your account.

Not exact matches

ASBMB's report, Unlimited Potential, Vanishing Opportunity, collected anonymous statements from respondents regarding the risk of job loss as a result of diminished science funding.

It's definitely not advisable to take an unhedged short position, either by borrowing someone else's share (s) to sell or selling an option (when you sell the option you take the risk), because of the unlimited loss potential described above.

To avoid this unlimited loss risk, you can instead buy a put option contract.

The main pros and cons of variable universal life are that since you have the benefit of potential unlimited gains, you also bear the risk of potential unlimited loss.

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.

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.

While it does provide unlimited possibilities for profiting, it also involves a large amount of risk and as brokers typically warn almost everywhere when it comes to leveraged products, losses may exceed your deposited money.

The risk of loss associated with short selling is virtually unlimited.

With short sales and certain forms of option trades, the risk of loss is hypothetically unlimited as investors who short may be required to purchase shares to cover at any time, and at any price.

Whereas a simple Long / Short position may sustain a theoretically unlimited fatal loss, a pair position is protected from this risk, by its very nature.

The reason is that there are so many risks: government regulations of short - selling (SEC Rule 204), special government regulations put in place during market panics (e.g. the 2008 SEC ban on short selling financials), forced buy - ins, unlimited losses, debt to the brokerage, interest one is charged for being short which can vary arbitrarily, brokerages could change margin requirements to any arbitrary amount, arbitration clauses, you agree to indemnify the brokerage for anything it did even if it did the wrong thing, some brokerages also do market - making and thus have further incentive to fleece the client, and all the other «screw you» legal language that you agreed to when opening an account.

Your loss could be offset by the premium made, but the risk for loss is unlimited.

Traders should read The Option Disclosure Statement before trading options and should understand the risks in option trading, including the fact that any time an option is sold, there is an unlimited risk of loss, and when an option is purchased, the entire premium is at risk.

Federated Prudent Bear Fund regularly makes short sales of securities, which involves unlimited risk including the possibility that losses may exceed the original amount invested.

Short sale risk is the risk that the Fund will incur an unlimited loss if the price of a security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security.

In terms of criminal liabilities, while victims will obviously suffer financial and reputational theft and loss or risk of loss (as well as personal distress / harm), perpetrators will be liable for sentences of imprisonment or unlimited fines, together with compensation and confiscation orders.