Sentences with phrase «underlying asset increases»

There is one other factor that can increase the odds that the event we want to happen will occur — if the volatility of the underlying asset increases.

You profit on a call when the underlying asset increases in price.

A kind of binary option that pays out if the price of the underlying asset increases to above the option's strike price.

With these options, money is made when the price of the underlying asset increases in value.

The way ETFs trade and the way underlying assets increase or decrease are two different processes.

Not exact matches

Blockchain technology could also increase investor confidence in products whose underlying assets are opaque or where property rights are made uncertain by the role of central authorities, the report says.

And while your underlying asset is appreciating, the income also grows as rents increase over time.

This might be a result of the increasing price of the underlying asset (ceteris paribus, as the price of bitcoin rises, so would the volume of exchange).

A bond fund with a longer average maturity will see its net asset value (NAV) react more dramatically to changes in interest rates as the prices of the underlying bonds in the portfolio increase or decline.

Disappearance of markets and sharply increased doubts about valuations both of structured products and the underlying assets are continuing to affect the credit markets.

Ownership of the asset (in this case silver) never lies in the hands of the trader, they are simply speculating on whether the price of the underlying asset will increase or decrease.

Note that margin requirements usually increase proportionately to the value of the underlying trade asset.

Underlying Price Risk: The price of ETFs will fluctuate, reflecting changes in the value of the underlying assets or derivatives, so the value of your investment may increase orUnderlying Price Risk: The price of ETFs will fluctuate, reflecting changes in the value of the underlying assets or derivatives, so the value of your investment may increase orunderlying assets or derivatives, so the value of your investment may increase or decrease.

It is true that returns on TFSA assets would otherwise be taxed, and these returns and underlying assets will increase steadily over time.

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.

Both are largely dependent upon inflation for growth in the underlying asset, as well as for the cash flow to increase.

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.

Our clients can now speculate purely on the price movement of the underlying asset, utilising leverage to increase their positions if they wish to», she added.

Hedges will also be derivative securities that increase in value when the underlying asset — what the derivative is derived from — drops in value.

With increasing distance from the underlying asset these actors relied more and more on indirect information (including FICO scores on creditworthiness, appraisals and due diligence checks by third party organizations, and most importantly the computer models of rating agencies and risk management desks).

Variable Life Insurance (VUL) provides the flexibility of Universal Life, but also the potential to increase your cash value by allocating your money into various sub-accounts that invest directly in the underlying asset class, similar to mutual funds.

As with all CEF investments, there is an additional potential for profit besides the increase in value of the underlying assets per share (also called Net Asset Value or NAV), which is the improvement of their market price relative to their NAV.

If the price of the underlying asset continues to increase, the potential profit is unlimited.

Paying the spread on entries and exits prevents profiting from small moves, while decreasing winning trades and increasing losses by a small amount over the underlying asset.

It's truly a win - win, because the underlying assets (the dividend growth stocks themselves) are typically increasing in value as the businesses they represent equity in are becoming worth more.

Mortgage securities and collateralized mortgage obligations (CMOs) are subject to prepayment risk and the risk of default on the underlying mortgages or other assets; such derivatives may increase volatility.

Call option — this is the option an investor uses when they want to predict an increase in the value of an underlying asset.

A call warrant gives you the right to buy the underlying asset so you benefit from an increase in the asset price.

Put options are designed to increase in value when the underlying asset or ETF falls in price.

If you are able to open new CFD positions when underlying assets are suspended or halted, your risks are increased.

«Going long» means buying a CFD in the expectation that the underlying asset will increase in value.

ETF bid - ask spreads did widen marginally, but almost always less than the bid - ask increase in the ETFs» underlying assets.

The combination of a measurable increase in ETF trading volumes, disproportionately small corresponding net cash flows, and consistently tighter bid - ask spreads in large ETFs than in the underlying assets suggests that investors who used ETFs to reduce or add to market exposure benefitted from liquidity that was additive to the underlying asset markets.

Note that if these assumptions were to increase, we would have to increase the assumptions in option 1 as they are based on the same underlying asset (i.e. the property market).

They were holding minimum reserves because a guy named Geithner at the New York Federal Reserve ruled that since the values of the underlying assets were increasing, they could consider the loans practically «riskless» as long as they carried default insurance.

Variable Life Insurance (VUL) provides the flexibility of Universal Life, but also the potential to increase your cash value by allocating your money into various sub-accounts that invest directly in the underlying asset class, similar to mutual funds.

Variable Life Insurance (VUL) provides the flexibility of Universal Life, but also the potential to increase your cash value by transferring your money into different sub-accounts directly into the underlying asset class, similar to mutual funds.

When roadmap deadlines are hit, presentations take place, and utility has increased the value of the underlying asset tends to increase in value in comparison to BTC and other altcoins.

Instead, investors buy contracts that track the underlying assets price and they speculate on whether the contract price will increase or decrease by the contract expiration date.

The update comes «against a background of increased enquiries to BaFin regarding the areas of securities and asset management,» the note states, with potential ICO operators enquiring «whether the underlying tokens, coins or cryptocurrencies behind so - called ICOs are viewed as financial instruments within the area of securities supervision.»