Sentences with phrase «underlying value of the futures contract»

Not exact matches

Future contracts for cryptocurrency allow to make trades for the price of value for the underlying cryptocurrency for some time in the fFuture contracts for cryptocurrency allow to make trades for the price of value for the underlying cryptocurrency for some time in the futurefuture.

As a futures contract the E-mini is an agreement to buy or sell cash value of the underlying index at a specific period at a later date.

The value of a derivative depends on the value of its underlying asset, thus by predicting the future price of the asset, the future price of the derivative contract can be judged and traded on.

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.

Contracts on the price of real estate include predictions of the future value of the underlying asset.

where F is the current (time t) cost of establishing a futures contract, S is the current price (spot price) of the underlying stock, r is the annualized risk - free interest rate, t is the present time, T is the time when the contract expires and PV (Div) is the Present value of any dividends generated by the underlying stock between t and T.

They derive their value from the value of an underlying asset or another financial instrument including futures contracts.

The value of an option will fluctuate with the value of the underlying futures contract, allowing options to be bought and sold on an exchange and traded in the same manner as futures.

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.»

These risks include (i) leverage risk (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the futures contract may not correlate perfectly with the underlying index.

The amount of initial margin is small relative to the underlying notional value of a futures contract.

The smaller the margin requirement in relation to the underlying value of the security futures contract, the greater the leverage.

Naturally, as with any financial product, the value of the security futures contract and of the underlying security may fluctuate.

There is an arithmetically calculated value for the difference, or spread, between the futures contract price and the actual cash value of the underlying stocks (in the appropriate weighting) comprising the S&P 500.

Stock index futures otherwise known as equity index futures are future contracts that use the value of an index as an underlying asset.

You are essentially betting on whether the value of an underlying asset is going to rise or fall in the future compared to what it was when the contract was taken out (or executed).

A derivative is a financial contract linked to the future value or status of the underlying to which it refers (e.g. the development of interest rates or of a currency value).

The futures contract rewards the party that makes the most accurate prediction of the future value of the underlying asset.