Sentences with phrase «value of the underlying security»

Thus, Rs 10 should not be misunderstood as weight market value of underlying securities.

In both cases, fixed income ETF prices can be different than the perceived value of their underlying securities.

Pricing a futures contract starts with the current value of the underlying security.

The market value of the underlying securities will fluctuate and subsequent market value of the portfolio will reflect such daily pricing.

Shares of ETFs may trade at a premium or a discount to the net asset value of the underlying securities.

The value of the Fund's positions in options fluctuates in response to the changes in value of the underlying security.

You receive shares based on the actual closing market price of the fund, and that is based on the actual value of the underlying securities, and it is the same whether you buy or sell shares.

Those revenues easily cover the cost of providing that liquidity, which is the cost of understanding the psychology of the passive investors, so as to anticipate their net flows, and also the cost of determining the fair value of the underlying securities, to know what prices he can prudently pay for them, in case he gets stuck holding them.

Authorized participants receive the same value of the underlying security in the fund after selling shares.

The NAV represents the per - unit value of the underlying securities, so in theory it should be what investors are willing to pay for one share of the ETF.

At any given time, the spread on an ETF may be high, and the market price of shares may not correspond to the intraday value of the underlying securities.

Like a mutual fund, ETFs are open - ended, meaning that new units of the fund can be created or redeemed at a price per unit that reflects the market value of the underlying securities the fund holds.

On the other hand, thanks to the arbitrage mechanism that all ETFs have and similar to open - end mutual fund valuation, the value of an ETF as traded stays very close to the net asset value of the underlying securities in the ETF, with a spread of around 1 % if any.

Because options contracts guarantee the right to trade an asset at a specific price for a certain period of time, their price depends in large part on the perceived value of the underlying security and the length of time before the option expires.

In most cases, even the intraday prices correlate to the actual value of the underlying securities.

The notional value of a derivative is the value of the underlying security on which the derivative is based.

That means that during some periods they may sell at a premium or discount to the value of their underlying securities.

If you're buying 100 shares, and thousands of other small investors are buying 100 shares, well, you'd expect the price of the ETF to get SLIGHTLY rich vs. the value of the underlying securities.

The value of each investment option will vary from day to day, reflecting changes in the value of the underlying securities within each investment strategy.

Share prices can deviate from the fund's net asset value of the underlying securities it holds, as market forces of supply and demand can lead to a trading discount or premium.

An ETF's assets will fluctuate based on both changes in the value of the underlying securities and the creation of new shares or redemption of existing shares.

You will, of course, need to rebalance your portfolio from time to time to make sure your desired investment mix is maintained as the values of the underlying securities change.

They also don't track the value of the underlying security over time — just for one day.

In addition, clients will be subject to those risks affecting the ETF, including the effects of business and regulatory developments that affect ETFs or the investment company industry generally, as well as the possibility that the value of the underlying securities held by the ETF could decrease or the portfolio becomes illiquid.

The value of an index increases or decreases with changes in the value of the underlying security or sector it's measuring.

It is simply the process of determining the value of the underlying a security and then buying it at a considerable discount from that value.

As you are aware, debt funds in India are marked to market, that is their NAV is determined on a daily basis by using the value of the underlying securities / investments.

Closed - ends funds generally trade at a discount or premium to the value of the underlying securities.

The market value of the underlying securities will fluctuate and subsequent market value of the trust will reflect such daily pricing.

DDs differ from pure straddle positions in that gains in the value of the underlying security above the range of the straddle payoff are generally capped, and losses in the value of the underlying security beyond that range lead to losses for the DD investor, including perhaps a total loss of principal.

They can trade at significant price differences compared to the value of the underlying securities.

The process provides a mechanism to keep the market ETF prices close to the value of the underlying securities.

The point here is that people, mostly financial advisers, think they have magic powers and can tell if a very large basket of stocks in an ETF is currently overpriced or underpriced relative to the value of the underlying securities it holds.

The price (AKA NAV, or net asset value) is always fixed at the value of the underlying securities.

If many investors want to buy an ETF, for instance, the ETF's share price might rise above the value of its underlying securities.

ETF trading prices may not necessarily reflect the net asset value of the underlying securities.

With multiple APs watching most ETFs, ETF prices typically stay in line with the value of their underlying securities.

That means that during some periods they may sell at a premium or discount to the value of their underlying securities.

Variable Life Insurance - life insurance whose face value and / or duration varies depending upon the value of underlying securities.