Sentences with phrase «spot price of the asset»

The cash position is the difference between the spot price of the asset on the settlement date and the agreed upon price as dictated by the forward / future contract.

Not exact matches

However, even if you're purchasing metal for delivery, given the competitiveness of Hard Assets Alliance's premiums over the gold spot prices, they are still the clear winner.

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.

Gold is often viewed as a safe haven asset as it has preserved its value in real terms through hundreds of years of history, but this leads to its market price often becoming overly speculative at times when people are worried about inflation which can cause its spot price to fluctuate wildly.

Namely, backwardation is the idea that the price of a futures contract for some future delivery of the underlying asset is lower than the current spot price.

By relating option prices to observables (such as strike prices, time - to - expiration, spot price and so on) and one unknown parameter (implied volatility of the underlying asset return dynamics), Black and Scholes (1973) allowed practitioners to more systematically study observed option prices.

Buying gold bars, coins, and jewelry ensures that the value of the assets in one's hand will move in unison with spot gold pricing.

How to Spot a Market Bubble The bursting of two major asset bubbles — in home prices in recent years and Internet stocks at the turn of the century — has trained investors to scan the horizon for signs of where the next one might form.

Finally if Levy, in his heart of hearts, wanted to realize the share price appreciation and he / his compadres thought there was value, they'd simply buy back stock or sell assets — you were spot on.

These blind spots are distorted reflections of the perfect market assumptions underpinning the canonical theories of financial economics: modern portfolio theory; the Modigliani and Miller capital structure irrelevancy principle; the capital asset pricing model and, perhaps most importantly, the efficient market hypothesis.

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 performance of your CFD or Spot FX Contract will depend on the prices set by NSFX and market fluctuations in the underlying asset to which your contract relates.

The prices are trading nearly at spot, which is trivial for an asset with a minimum of 20 % of monthly volatility.