Sentences with phrase «where prices of the underlying asset»

Britain's Financial Conduct Authority has also warned specifically about the dangers of crypto CFDs, where prices of the underlying asset can fluctuate wildly in minutes.

Identifying areas where the price of an underlying asset has been unjustifiably pushed to extremely low levels is the main goal of many technical indicators such as the relative strength index, the stochastic oscillator, the moving average convergence divergence and the money flow index.

Not exact matches

It's just dealing with a market where certain investors are temporarily willing to invest at prices that exceed the underlying value of the assets.

This describes an option where the current price of the underlying asset equals the option's strike price.

Oversold is a condition in which the price of an underlying asset has fallen sharply, and to a level below where its true value resides.

Oversold is a condition in which the price of an underlying asset has fallen sharply to a level below where its true value resides.

Current Yield: Where available, this figure is calculated as the asset - weighted sum of each underlying security's coupon divided by the current price.

Where available, this figure is calculated as the asset - weighted sum of each underlying security's coupon divided by the current price.

Options contracts are priced solely by the trading price of the underlying asset, so even if your multiple account trading could only at best break even when you sell your final holdings (basically resetting the price to where it was because you started distorting it), this is fine because your real trade is in the options market.

Market makers adjust for such skewness by, instead of using a single standard deviation for the underlying asset σ -LCB- \ displaystyle \ sigma -RCB- across all strikes, incorporating a variable one σ (K)-LCB- \ displaystyle \ sigma (K)-RCB- where volatility depends on strike price, thus incorporating the volatility skew into account.

If, on the other hand, the spread between a future traded on an underlying asset and the spot price of the underlying asset was set to widen, possibly due to a rise in short - term interest rates, then an investor would be advised to sell the spread (i.e. a calendar spread where the trader sells the near - dated instrument and simultaneously buys the future on the underlying).