In both cases the intention of the regulations and laws is to establish reasonable contract grades that appropriately represent
the underlying value of the commodity to potential investors, and to ensure that all transactions are conducted in an honest and sincere manner.
Not exact matches
And, digital currencies aren't (at least at this time) like a
commodity which has
underlying value of a physical asset.
(As an aside, equilibrium means «no tendency to change,» fiat means deriving its
value from law rather than some
underlying commodity backing, and fractional reserve means that banks hold only a fraction
of deposits on reserve, loaning the rest out.).
While a decline in near - term
commodity prices reduced our estimate
of value due to lost interim cash flows, the stock's decline has significantly exceeded what we think is the true change in the company's
underlying business
value.
Anyone can profit from the movement in the
value of a large and dynamic range
of commodities,
underlying assets, stocks, and shares.
Commodity currencies derive their value from the value of an underlying commodity (e.g., gold used in th
Commodity currencies derive their
value from the
value of an
underlying commodity (e.g., gold used in th
commodity (e.g., gold used in the coins).
• Creates an instrument in favor
of the holder, the
value of which is based on an
underlying index,
commodity, currency, or other asset.
There are three main kinds
of derivatives on the
commodities market — contracts made between two or more parties who agree on the
value of the
underlying asset: futures and forwards, options and OTC products.
The current trading
value of an ETFs is derived from the net asset
value of the
underlying stocks /
commodities that it represents.
Investors should understand that because
of the complex financial methods used by
commodities funds, they may have more risk than simply the
value of the
underlying assets.
Investing in
commodities indices that are constructed using long or short positions in futures on physical
commodities whose
value is determined based on the price
of the
underlying physical
commodity plus yield and that trade on public markets that provide adequate liquidity and transparency, with negligible costs and no storage deterioration risk, offer a practical method to gaining
commodities exposure and can provide a means for market participants to access the five components
of the returns
of the asset class.
Derivative A financial instrument, traded on or off an exchange, the price
of which is directly dependent upon (i.e., «derived from») the
value of one or more
underlying securities, equity indices, debt instruments,
commodities, other derivative instruments, or any agreed upon pricing index or arrangement (e.g., the movement over time
of the Consumer Price Index or freight rates).
A type
of financial instrument whose
value is based on the performance
of an
underlying financial asset,
commodity, or other investment.
This process
of buying longer - dated futures contracts can sometimes be more expensive than simply buying and holding the
underlying commodity because
of changes in the spot price
of the
commodity and the amount
of time
value in the futures contract — a situation known as «contango.»
A financial instrument, traded on or off an exchange, the price
of which is directly dependent upon the
value of one or more
underlying securities, equity indices, debt instruments,
commodities, other derivative instruments, or any agreed upon pricing index or arrangement.
Anyone can profit from the movement in the
value of a large and dynamic range
of commodities,
underlying assets, stocks, and shares.
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.
That was the response from
Commodity Futures Trading Commission chairman J. Christopher Giancarlo when asked by Arkansas Senator Tom Cotton about the
value of the technology
underlying cryptocurrencies like bitcoin.