Sentences with phrase «underlying asset prices»

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.

Traders enjoy this simple way of making money by simply predicting the movements of underlying asset prices.

Traders enjoy this simple way of making money by simply predicting the movements of underlying asset prices.

As the name indicates, the boundary or the range is predetermined by the broker, and you just have to predict whether the underlying asset price will close outside the boundary or inside the boundary.

To the degree that they're a reflection of the underlying asset price (I love your fishing analogy, btw....

What if» scenarios - Change implied volatility, days to expiry or the underlying asset price of an option to model it in thousands of potential scenarios.

However, if Gamma is large in absolute terms, Delta is highly sensitive to the changes in the underlying asset price.

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.

If a put option is in - the - money — that is, the strike price is higher than the underlying asset price — the price will go up.

Because they offer the right to sell, put options are more valuable when the underlying asset price is falling.

Otherwise the difference between the forward price on the futures (futures price) and forward price on the asset, is proportional to the covariance between the underlying asset price and interest rates.

Here, if the underlying asset price is greater than or equal to the trigger price it is optimal to exercise, and the value must equal S − X -LCB- \ displaystyle S - X -RCB-, otherwise the option «boils down to: (i) a European up - and - out call option... and (ii) a rebate that is received at the knock - out date if the option is knocked out prior to the maturity date».

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.

Not exact matches

Put options can be a way for investors to bet against an asset, as they become more valuable as the underlying asset's price falls.

Britain's Financial Conduct Authority has also warned specifically about the dangers of crypto CFDs, where prices of the underlying asset can fluctuate wildly in minutes.

It's just dealing with a market where certain investors are temporarily willing to invest at prices that exceed the underlying value of the assets.

While these CFDs, the underlying digital assets of which «have displayed very high price variation,» are not traded on public exchanges in the eurozone, their popularity in Europe has nonetheless grown over the last several years.

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).

ETFs are subject to risks similar to those of stocks and trading prices may not reflect the actual net asset value of the underlying securities.

Recovery is now in its ninth year with relatively slow underlying growth for demographic and technological reasons, very low unemployment and high asset prices.

The issue is very simple: U.S. wealth is overstated because the prices of stocks, bonds (particularly corporate), even real estate, are excessive in relation to the replacement value of the underlying assets, and the income streams that are derived from them.

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.

These financial products track the price of an underlying asset (in this case, bitcoin) and gain or lose value relative to that base asset.

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.

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.

Basically, in the High / Low options, you predict the final price of an underlying asset relative to its current price.

A derivative instrument is a financial instrument that derives its price from the value of an underlying asset.

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

The GBTC trades like a closed - end - fund usually at a price that is substantially different than the value of the underlying asset, and does not possess the ability to create or redeem shares in the open market.

These are bullish bets — you believe that the price of the underlying asset will rise by a specified time.

That is, if the underlying asset's price will be above or below the current one by the time the trade expires.

The scale of these recent moves in VIX overshadows the price action in the underlying assets.

An ETF holds assets such as stocks, supplies, or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day.

Authorized participants may wish to invest in the ETF shares long - term, but usually act as market makers on the open market, using their ability to exchange creation units with their basic securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates to the net asset value of the underlying assets.

ESMA issued a call to submit evidence on potential interventions in crypto CFD, arguing that the very high price volatility of crypto currencies as the underlying assets have raised concerns about the protection of investors.

When a large number of investors are feeling either positive or negative about an underlying asset, a price trend is likely.

Additionally, should the price be stagnant due to an upcoming news release regarding the underlying asset, the price could move drastically once it does move again.

If you purchase an option, and the price for the underlying asset is higher when you decide to exercise your option, you earn money.

Because CFDs are essentially derivatives, the price of CFDs is a fraction of the actual value of the underlying asset.

The expected future volatility of the underlying asset is one of the most important determinants of the option price.

Being disconnected from reality, these «products» have been more easily subjected to price manipulation than the underlying assets, and therefore have served as effective policy levers for central bankers to distort reality to achieve their objectives.

It is a much easier task to affect the price of cash - settled instruments notionally backed by real underlying assets in rigged exchanges that court hyperactive turnover.

It is a legal contract between 2 parties, a buyer and a seller to agree to pay the difference in the current price of the underlying asset and its contract value.

So, up to this point we know that you will need to select an underlying asset, expiry time, and prediction of price movement.

The prices of financial instruments and the underlying assets will be influenced by, among other things, changing national and international political and economic events and the prevailing conditions of the relevant marketplace.

The price of a CFD is derived from the price of the underlying asset (including shares, indices commodities and ETFs; please refer to our CFDs list section for details) which can be highly volatile.

Futures are used to either hedge or speculate on the price movement of an underlying asset, such as a physical commodity or financial instrument.

A security whose price is dependent upon or derived from one or more underlying assets.

Method of creating and trading derivative investment products based on a volume weighted average price of an underlying asset (Dennis O'Callahan, Catherine Shalen 2006)

For every investable asset — publically traded or otherwise — the underlying value of the asset is the sum of the discounted future cash flows, and risk comes from paying too high a price for those cash flows.