Gearing definition

Gearing means -1; "Option" means Put;
Gearing. Transactions in futures carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract so that transactions are “leveraged” or “geared”. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to provide additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.
Gearing means -1;

Examples of Gearing in a sentence

  • Gearing Risk: Structured products such as derivative warrants and callable bull/bear contracts (CBBCs) are leveraged and can change in value rapidly according to the gearing ratio relative to the underlying assets.


More Definitions of Gearing

Gearing means the multiple or fraction specified as such in the applicable Final Terms. The value of the Gearing may be lower than, equal to or higher than 1 (one) or 100 per cent. but not lower than or equal to 0 (zero) or 0 per cent.
Gearing means 100%
Gearing means 100 per cent.;
Gearing means Financial Indebtedness of the Licensee and related undertakings divided by the Value of the RAB of the Licensee and related undertakings and expressed as a percentage
Gearing means net exposure under all contracts and positions held at the relevant point in time.