Sentences with phrase «when price volatility»

And it's also worth noting that the CBOE exchange instituted trading halts when price volatility was too extreme.

It will be a better world when price volatility is a thing of the past.

Not exact matches

Cryptocurrencies» extreme volatility dissuades many people from using them to pay for things, and vendors from allowing payments in Bitcoin — it's too hard to accurately price things in Bitcoin, and when the value is rising there's more to gain from hoarding Bitcoins than from spending them.

When asked if he was worried about U.S. shale producers ramping production and eclipsing the recent international cuts, Novak said, «Undoubtedly the joint action by many countries to achieve the balance and to reduce the output are aimed at giving stability to the market and as a result we see a great level of investment, lower volatility, prices stabilizing at a certain level, which does play out to move investment going into shale production so one needs to assess the overall supply and demand balance.»

If Brexit - like sentiment in other nations leads to restrictions on the flow of trade and labor, he adds, «that is going to create greater uncertainty and volatility» — at a time when some commentators believe that global stock and bond prices are overdue for a tumble.

«A lot of these guys are going to pull the rip cord and get out of the trade when the price goes against them with all this intraday volatility,» said S3 Partners» Head of Research Ihor Dusaniwsky.

And since the dealer buys when people are selling, and sells when they're buying, he has a tendency to reduce volatility: If you really need to sell, and there are no dealers, you're going to slash your price to get rid of your bonds.

They also developed new rules, known as circuit breakers, allowing exchanges to halt trading temporarily in instances of exceptionally large price declines.12 For example, under current rules, the New York Stock Exchange will temporarily halt trading when the S&P 500 stock index declines 7 percent, 13 percent, and 20 percent in order to provide investors «the ability to make informed choices during periods of high market volatility.»

More importantly, they process and interpret information in the same was as speculators and rather than act to stabilize prices (by buying for value when prices decline), they tend to enhance volatility by reinforcing appreciation and depreciation expectations.

When volatility is relatively high options prices will usually be slightly higher, so out of the money put options should be a little more expensive than during times of lower volatility.

When volatility is average, options prices will typically be a little lower than during a bearish market and that might cause options that are farther out of the money to be priced so low that the risks involved outweigh the profit potential.

And when valuations are at extremes, as we believe bonds are today, historical price volatility might not shed much light on future risk.

Although it is obviously impossible to know precisely when a strong stock will breakout, but most stocks undergo a multi-week volatility contraction (tightening of consolidation) immediately before they zoom higher and enter into a price expansion.

Therefore, bonds with higher duration generally have greater price volatility and the potential for losses when rates rise.

For example, they believe in the efficient market hypothesis, and therefore believe that the volatility of stock prices is equivalent to real risk, and they place a strong emphasis on volatility when they judge your performance.»

Implied volatility is higher when the option price and the expected volatility are higher.

Also, in general, keep in mind that it often makes sense to sell options in periods of high volatility, when option prices are elevated, and buy options in periods of low volatility, when options are cheaper.

We have a very rigorous process when listing new assets to make sure they have enough liquidity to handle price volatility.

Stock markets are near all - time highs, volatility has been low, and stock valuations are above - average when comparing prices to earnings or other fundamentals.

Most dividend growth investors like to own stocks with low volatility, because then you are less likely to become emotional about them when their price drops.

Volatility refers to the changes in price that securities undergo when trading.

«We are convinced that «quant» funds», which have attracted hundreds of billions of dollars in the last few years and a significant portion of which use leverage, and whose models and various strategies are largely based on price action and correlations extracted from the reasonably - recent past when volatility has been low (largely of their own making), have contributed mightily to the illusion that market risk is low.

Futures prices generally move somewhat in response to changes in the spot price, even when movements in the latter are driven by transitory factors, but their substantially lower volatility suggests that they are more anchored to longer - run price fundamentals than are spot prices.

For the Dow Jones Industrial Average, since 1926, the odds of a 10 % correction happening are 1 in 3 — they are par for the course when it comes to the stock market's value proposition (which is that the price for higher returns is higher volatility).

«When people do try to measure investment risk, they typically assess the historic volatility of an investment compared to that of the overall market (known as beta), which derives from capital asset pricing theory.

They become especially useful during times of market volatility when prices might be uncertain.

High volatility permits an investor to purchase stocks that are particularly depressed and to sell stocks when they are selling at particularly high prices.

As we build our sector - leading asset bases and new factories — the nutritional powders, consumer cheeses and the beverages plant — when they all come online in the next two to three years, they will deliver the ultimate prize, which is an effective shield [against global price volatility].»

However, wider challenges remain for the sector, not just in terms of rising raw material prices, but also in managing the volatility in the price and supply of many key commodities, and ensuring the continuity of supply when product availability is short in the UK or globally.»

At times when volatility spikes, pricing dislocations can occur in otherwise attractive assets.

Low - volatility equities Lower - volatility stock strategies typically experience less dramatic price changes when the market goes down since fund managers aim for benchmark returns with considerably less risk.

We expected volatility such as this when we launched the fund — the small number of stocks and relatively large positions tends to mean a volatile unit price.

This is also why the volatility of the spot price is high when inventory is low.

Under contingent claims theory, spreads should narrow when equity prices rise, and when implied volatility of equity options falls.

All they know is that bonds do tend to reduce the volatility of your portfolio, since they tend to rise when stock prices fall.

Indeed, commodity prices and volatility often go hand in hand with each other, particularly during periods of supply shortage, when both will spike upwards; this is why the distribution of commodity returns tends to be positively skewed.

Short ProShares should lose value when their market indexes rise; and they entail certain risks, including, in some or all cases, aggressive investment techniques, inverse correlation and market price variance risks, all of which can increase volatility and decrease performance.

A careful active investor could more safely now contemplate no more than a small allocation to a mechanical system with a moving average (e. g., a 150 - day mean would have worked, but with 0 days» margin of error when the price dropped below the MA before the closing bell on Feb 5) or use more sophisticated volatility signals to be in or out of SVXY (perhaps giving some extra days» warning to get out).

Preferred shares are extremely popular with taxable investors, because have little price volatility except when interest rates move (which makes them similar to corporate bonds), and because their distributions are eligible for the dividend tax credit.

Therefore, the risks due to market volatility and adverse price movements are mitigated when you choose SIPs.

Closed - end funds tend to trade with higher volatility from their NAV than ETFs because ETFs have authorized participants that actively follow the shares and take action to reconcile the price in the open market when it deviates from the NAV.

In fact, I tend to buy when prices are low and ride out the market volatility while keeping in mind my long term plan to have a regular dividend income each month.

Short ProShares and ProFunds should lose value when their market indexes rise, and they entail certain risks, including, in some or all cases, aggressive investment techniques, inverse correlation and market price variance risks, all of which can increase volatility and decrease performance.

If / when these indicators establish the utilization of the Bollinger Bands; the forex trader will have a stronger conviction that the Bollinger Bands are forecasting correct pricing as it relates to market volatility.

Short ProShares and ProFunds should lose value when their market indexes rise, and they entail certain risks, including, in some or all cases: aggressive investment techniques, including the use of futures contracts, options, forward contracts, swap agreements and similar instruments; inverse correlation; and market price variance risks, all of which can increase volatility and decrease performance.

With breakout trades, the goal is to enter the market right when the price makes a breakout and then continue to ride the trade until volatility dies down.

Low volatility is not hard to spot — it's when the price is meandering sideways and not moving up or down very much.

Unfortunately, some people want the volatility of having only a few stocks, as if large price movements could only exist when the market goes up.

When trading a high volatility event that potential price move will be priced into the option, after the event the option price will remove that volatility value and the option value will collapse.

Instead investors should look at the fund's duration to predict its price volatility when interest rates are changing.