Leverage Products

Leverage products allow investors to participate to a disproportionately high degree in the performance of the underlying while themselves putting little money down. The leverage effect means that the risk attached to these products is correspondingly higher than that of a direct investment. Leverage products are thus suitable only for investors with a high risk profile.

Your Market expectation

• Long: Price increase in underlying
• Short: Price decline in underlying

Characteristics

• Lower amount of invested capital leverages gains/losses in underlying
• Alternative to classic futures contract. The mini-future price always corresponds to its intrinsic value (underlying price less financing level)
• If stop-loss is hit, residual value is paid out
• Not influenced by volatility and no time-value loss
• Suitable for short-term speculation or hedging purposes
• Intensive monitoring required
• Total loss possible, but limited to amount invested