Sentences with phrase «to own the underlying asset»

We believe that certainty of underlying asset value is the most important factor to consider when evaluating risk.
This implies that the fund will lose value at double rate of the increase in underlying assets value.
A passive index fund allows investors to track the performance of a pool of underlying assets at low cost.
The top stories of the day are the perfect place to look for underlying assets that are on the move, or likely to be.
They're a type of financial instrument known as a derivative because options contracts derive their values from underlying assets.
There are many underlying assets such as debt, equity, gold, and real estate, etc., in which money is invested through mutual funds.
The correlation coefficient represents the similarity of the movements between two underlying assets over specified time period.
The way ETFs trade and the way underlying assets increase or decrease are two different processes.
As derivative markets have become more liquid and the use of instruments such as options more widespread, it has become increasingly possible to use information from these instruments to analyse underlying asset markets.
You require a broker that supports a wide - ranging list of premier underlying assets within the 4 main trading activities of currencies, commodities, stocks and indices.
They can also be used to gain more efficient investment exposure to a set of underlying assets without buying the assets directly.
You simultaneously purchase both a call and a put option with the same underlying asset, strike price and expiration date.
This enables the trade of many underlying assets that have large initial capital requirements.
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.
The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes.
Essentially, derivatives are financial instruments that can be used to limit risk; their value is «derived» from underlying assets like mortgages, stocks, bonds or commodities.
We won't explore the act of rebalancing too closely here but keep in mind that management fees and rebalancing may cause ETFs to perform a little differently from its actual underlying asset.
This strategy invests in a portfolio that contains different underlying assets instead of investing directly in bonds, stocks and other types of securities.
When selecting ETFs, we make sure they have strong managers, high liquidity, and real underlying assets.
A covered call option is a contract sold or «written» on a long underlying asset owned by the call option writer, for a premium.
This also means that you are provided with direct market access to trade Options on various underlying assets on live streaming prices without dealer intervention.
And although I don't care much for the fees charged in connection with the fund, I do respect the high - quality underlying assets that make up the fund's holdings.
The assets that you trade in binary options are called underlying assets for this reason.
This enables it to offer traders a range of various underlying assets across global markets to trade.
The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes.
The platform also provides you with a suite of research tools and certain kinds of information, such as data on the way underlying assets are performing in the market.
You will find many different underlying assets here along with great rates of return.
This is the beauty of binary trading, as you are able to choose numerous underlying assets from within a variety of markets.
There was plenty of «stupid money» and bad commercial real estate loans with incredibly high leverage ratios and weak underlying assets that should have never been made.
If the market would be efficient this would be hard to explain since the lower underlying asset prices should already have reflected the bad news.
They are individual insurance contracts that invest in one or more underlying assets, such as a mutual fund.
This is an exceptional list of underlying assets on financial markets.
They can also apply to underlying assets like commodities and indices although the results won't be exemplary.
We won't explore the act of rebalancing too closely here but keep in mind that management fees and rebalancing may cause ETFs to perform a little differently from its actual underlying asset.
There are many underlying assets that are contracted to various financial instruments such as stocks, currencies, commodities, bonds and interest rates.
Nadex contracts are based on underlying asset classes including forex, stock index futures, commodity futures, cryptocurrencies, and economic events.
Stock futures are financial contracts, that is, legally binding agreement between two parties, to buy and sell underlying asset (stocks in this case) of specifying quantity in a future date at a price agreed upon between the buyer and the seller.
The additional risks of opening new CFD positions when underlying assets are suspended or halted should also be explained.
Trading in stock markets or commodity markets is actually trade in underlying assets which are not wholly financial in themselves, although they often move up and down in value in direct response to the trading in more purely financial derivatives.
In addition, the Governing Council announced it would purchase asset - backed securities with underlying assets consisting of claims against the euro area non-financial private sector and euro - denominated covered bonds issued by monetary financial institutions (MFIs) domiciled in the euro area.
Nadex contracts are based on underlying asset classes including forex, stock index futures, commodity futures, cryptocurrencies, and economic events.
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