Sentences with phrase «underlying value of the commodity»

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 thCommodity currencies derive their value from the value of an underlying commodity (e.g., gold used in thcommodity (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.
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