Sentences with phrase «sell the underlying asset so»

Now I heard that market makers always hedge their positions by buying or selling the underlying assets so that whether the market goes up or down, they always make money.

Not exact matches

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.

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.