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 comply with a request for 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 per cent.;
Gearing means 100%
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. You will enter into a privately negotiated transaction and/or contract with us, as principal, when you enter into foreign currency contracts with us. In turn, we may enter into "back-to-back" transactions with others, including our partners and counter-parties from third parties. In the price quotes we provide you with, we include our mark-up. The leveraged securities transactions and/or contracts you may enter into with us are NOT executed on a regulated exchange and are not cleared by a central clearing organization. Consequently, any transaction and/or contract entered into with us (as opposed to a clearinghouse obligation as in the case of an exchange-traded contract) will be an obligation on our part and the regulatory and financial protections offered by exchange-traded contracts will not be granted to you. Therefore, both of us are obliged, in accordance with their terms, to perform our respective obligations under each Transaction and/or Contract. In the event of any margin shortfall, we reserve the right to liquidate positions without prior notice, or if you fail to comply with the request for additional funds within the time prescribed. In addition, you should be aware that we and/or our associates may have significant positions in, and may make a market in, or otherwise buy or sell similar or economically related instruments, transactions and/or contracts entered into with you, from time to time. Furthermore, we may also engage in proprietary trading activities, initiate or terminate a transaction with you in a foreign currency agreement that may adversely affect the market price or other factors underlying the transactions and/or contracts entered into with you and, consequently, the value of such transactions and/or contracts. Phyntex Markets may change the leverage ratios (i.e. decrease or increase the leverage ratios) at any time and from time to time in its sole discretion and without notice on a case-by-case basis on all or any of the Customer's accounts and on the basis of any parameter chosen by it, including the application of different leverage ratios to different investments or times or in connection with external events, before or after an order is completed, any change in the leverage ratio may take effect. Your Margin Level, Margin Call Level, Stop-out Level will be affected by a reduction in the leverage ratio and may trigger a Margin Call. We will not be responsible for any losses arising from any change in the leverage ratios, e...