Sentences with phrase «value of the underlying asset»

The creation and redemption mechanisms help ETF shares trade at a price close to the market value of their underlying assets.

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

Generally warrants will only be suitable if you are very confident of the long - term value of the underlying asset.

The value of a futures contract is derived from the cash value of the underlying asset.

However, because of investment fluctuations, and also because of the expenses incurred when the policy is issued, this value may exceed the market value of the underlying assets.

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

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.

Derivative Trading is the trading mechanism in which the traders enter into an agreement to trade at a future date or at a certain price, after understanding what the future value of the underlying asset of the derivative is expected to be.

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.

When you trade CFDs, you take a position on the change in value of the underlying asset over time.

CFD (Contract for Difference) is an agreement between the investor and a contract provider to exchange differences in value of an underlying asset between the time the contract opens and closes.

Share prices vary throughout the day, based mainly on the changing intraday value of the underlying assets in the fund.

The structure of ARBNs before 2010 featured principal protection and returned the the absolute value of the underlying asset return within a certain range.

It's also important to keep in mind that because mutual fund assets are publicly - traded, the net asset value of its shares can be highly correlated to the fluctuations of the public market rather than tied solely to the inherent value of its underlying assets.

With CFDs, you only have to put in a fraction of the market value of the underlying asset when making a trade, sometimes as little as 1 %.

is the trading mechanism in which the traders enter into an agreement to trade at a future date or at a certain price, after understanding what the future value of the underlying asset of the derivative is expected to be.

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.

The objective of currency hedging is to reduce or eliminate the effects of foreign exchange movements over the life of the investment, such that a Canadian investor receives a return solely based on the change in value of the underlying assets, without the effect of changes in currency values.

A call option with a strike price higher or a put option with a strike price lower than the current market value of the underlying asset (i.e., an option that does not have any intrinsic value).

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

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.

You just need to focus on predicting in which direction the value of the underlying asset will advance.

The amount of the loan will largely be dependent on the value of your underlying asset and how easily they can be converted to cash should the need arise, although not desired.

This type of binary option pays out if the trader can correctly predict whether the value of the underlying asset will fall within a certain range at expiration or not.

The market price is the number most commonly quoted, including by most brokers; the value of the underlying assets is much less widely available.

The amount of loan given will be largely dependent on the value of the underlying asset.

Net asset value («NAV») returns are based on the dollar value of a single share of the ETF, calculated using the value of the underlying assets of the ETF minus its liabilities, divided by the number of shares outstanding.

He wanted to see how often, and how much, their market prices differed from the value of their underlying assets.

A: While we will look at the principal's credit, approval will largely be based on the value of the underlying asset, and often in spite of cash flow, financial condition, sales history, or other conventional lending criteria.

Shares are priced once daily — after the close of business — based on the value of the underlying assets.

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.

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 or decrease.

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.

They are murky because they don't report the value of the underlying assets, but only the smoothed value of assets, and the rate that they are currently crediting.

This means they derive their market worth from the value of underlying assets.

What's more, most REITs trade above the value of their underlying assets, an unusual situation.

The value of a derivative depends upon the value of its underlying asset.

The last three trade close to the value of their underlying assets, but the PIMCO fund regularly trades at a 50 % premium to net asset value.

The SH uses a complex system of swaps and other derivatives (financial instruments that reflect the value of underlying assets) to produce a very simple result: the inverse return of the S&P 500 index.

One side effect of a «close - end» structure is that the LIC share price can depart from the value of the underlying assets (usually other equities), so the share price can trade at a premium or discount to its Net Tangible Assets.

For over 30 years, Third Avenue has consistently pursued a fundamental, bottom - up approach to deep value investing: we focus on the company's balance sheet, the value of its underlying assets, and the discounted price of its securities.