Sentences with phrase «sell the underlying asset of»

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.

Binary options do not involve buying or selling the actual assets but traders just bet on the price movement of several underlying assets.

Instead of doing this, could I also hedge the risk by buying or selling another option on the same underlying asset?

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.

That's because the balance of the debt is due when you sell the underlying asset.

If you sell a Naked Call or Put Option, you should have underlying assets or an open position in the futures market to protect you from an unlimited loss arising out of adverse price movements.

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 intrinsic value is an easy calculation - the market price of an option minus the strike price - and it represents the profit that the holder of the option would enjoy if he or she exercised the option, took delivery of the underlying asset and sold it in the current marketplace.

Consider an over-the-counter (OTC) option sold (written) by Bank A to Customer C. Market risk refers to the fluctuating value of the option; if it is daily - mark - to - market, its value will be a function largely of the underlying asset price but also several other risk factors.

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.

A multi-leg options order is a type of order used to simultaneously buy and sell options with more than one strike price, expiration date, or sensitivity to the underlying asset's price.

«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.

They are formed by combining two or more options in the form of legs under which option contracts are bought and sold equally, but with different strike prices, sometimes different expiration dates and also different underlying assets.

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.

a «capital gain» on your original investment if the value of the scheme's underlying investment assets has gone up when they are sold.

Most of the time, investors can also receive the intrinsic value price for the underlying assets of the portfolio when selling.

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.

The first is the liquidity of the ETF itself (how easy it is to buy or sell it); the second is the liquidity of the underlying assets in the ETF.

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

CFD providers allow you to buy or sell CFDs on a range of underlying assets.

When you buy a CFD over a share, index or commodity (known as «going long»), you hope that the value of that underlying asset will rise, so you can sell the CFD for a profit.

«Financial futures», «Short selling» and «financial options» apply to these markets, and are typically pure financial bets on outcomes, rather than being a direct representation of any underlying asset.

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.

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).

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).

If a fund is unable to effect a closing purchase transaction with respect to options it has written, it will not be able to sell the underlying securities or dispose of assets earmarked or held in a segregated account until the options expire or are exercised.

If the fund is unable to effect a closing purchase transaction with respect to options it has written, it will not be able to sell the underlying securities or dispose of assets earmarked or held in a segregated account until the options expire or are exercised.

In the case of a share option, one party, the holder of the option, pays a premium to obtain the right to purchase (or sell) an underlying asset — a quantity of ordinary shares.

The special servicer ultimately enforced the security over the borrowers and proceeded to sell the underlying property assets over a period of time crystallising a significant capital losses for the issuer and noteholders.

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.

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.

Is there an OH law that prohibits assigning a purchase contract, regardless of the underlying asset being sold?