Sentences with phrase «sell the underlying asset at»

An option is a derivative instrument that gives the purchaser the right, but not the obligation to, buy or sell an underlying asset at a certain price (exercise price) on or before an agreed date.

Put Options and Example Put options give the holder the right to sell an underlying asset at a specified price (the strike price).

Put Options Put options give the holder the right to sell an underlying asset at a specified price (the strike price).

ETFs can take advantage of their two - tier structure (market makers create and redeem shares in exchange for the underlying assets, then sell / buy those shares to / from you) to essentially eliminate «capital gains distributions» (those pesky annual payouts that a fund is required to make when it sells its underlying assets at a profit as part of share redemption or asset rebalancing).

An option is a binding, specifically worded contract that gives its owner the right to buy or sell an underlying asset at a specific price, on or before a certain date.

Options trading is a form of derivative trading in which people trade contracts that give them the rights (but not obligation) to buy or sell an underlying asset at a predetermined price.

Not exact matches

Hi Nick, For those who don't know what a put is; An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Conversely, if the price of an underlying asset is expected to fall, some may sell the asset in a futures contract and buy it back later at a lower price on the spot.

If market participants anticipate an increase in the price of an underlying asset in the future, they could potentially gain by purchasing the asset in a futures contract and selling it later at a higher price on the spot market or profiting from the favorable price difference through cash settlement.

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 problem is that robos tend to include more «esoteric» funds, ones that not only trade with a larger spread between bid and ask prices (translation: higher cost to you), but also trade at a discount or premium to the underlying assets in the ETF (translation: higher costs to you if the manager buys at a premium or sells at a discount to asset value).

Mutual funds are typically purchased from and sold back to the investment company and priced at the end of the trading day, with the price determined by the net asset value (NAV) of the underlying securities.

Trading options on the derivatives markets gives traders the right to buy (CALL) or sell (PUT) an underlying asset at a specified price, on or before a certain date with no obligations this being the main difference between options and futures trading.

«Puts» give the buyer the right, but not the obligation to sell a given quantity of underlying asset at a given price on or before a given future date.

The price at which you buy and sell units reflects the underlying value of the infrastructure assets in which you have invested.

Options contracts are priced solely by the trading price of the underlying asset, so even if your multiple account trading could only at best break even when you sell your final holdings (basically resetting the price to where it was because you started distorting it), this is fine because your real trade is in the options market.

Shares are bought and sold on demand at their net asset value (NAV), which is based on the value of the fund's underlying securities and is calculated at the end of the trading day.

While many investors, realtors, and homeowners are familiar with a short sale transaction where the property is sold at a loss by bank with the institution taking a loss on the underlying note and or asset, most people don't realize that banks have been doing something very similar since the beginning of banking.

At its May 7 close of about $ 8 per share, the fund sold for a 16 % discount to the value of its underlying assets.

An option contract that gives you the right to sell (but does not lock you into selling) the underlying asset at a specified price, at or before a certain time in the future.

A put option is a contract that gives the owner of the option the right to sell a specified amount of the asset underlying the option at a specified price within a specified time.

The «strike price» is the price at which an underlying asset can be purchased or sold.

The right given by an options contract will lapse when the option reaches maturity, at which time the holder will no longer possess the right to buy or sell the underlying asset.

Accredited investors can buy shares of the trust at its net asset value and avoid the premium, but reports suggest that this privileged ability to buy new shares at their actual underlying value comes with a stiff limitation: Shares must be held for one year before they can be sold.

A futures contract is simply a contract to buy or sell a financial instrument or other underlying asset at a predetermined price in the future.