Examples of Reference Instrument in a sentence
It re- flects price movements in the Reference Instrument leveraged by a factor of -16 (Leverage).A decrease in the price of the Reference Instrument since the most recent calculation of an Underlying closing value res- ults in a positive change of the Underlying as compared to the previous price of the Underlying and vice-versa.
The redemption amount will correspond to the Reference Price of the Underlying on the relevant Exercise or Termination Date, multiplied by the Ratio.Underlying The Underlying is linked to the Reference Instrument and is calculated by the Index Calculation Agent.
Due to the daily adjustment of the Valuation Price, the Underlying and the Reference Instrument generally do not move in parallel over a period longer than one day; the likelihood that they will follow significantly different courses increases with each passing day.
In particular, daily up-and-down fluctuations of the Reference Instrument will lead to completely differ- ent price movements of the Underlying and the Reference Instrument within a few days; this can result in a decrease of the price of the Underlying although the Reference Instrument price decreases over a particular period of time.Due to the leverage effect in the Underlying, price gains of the Reference Instrument can significantly increase price losses on the product.
The Underlying consists of a leverage component and a financing com- ponent.The leverage component inversely tracks an investment in the Reference Instrument, whereby movements in the price of the Reference Instrument are multiplied by the Leverage.