Leverage effect

Enhanced exposure to losses and gains due to price changes.

What is the leverage effect in the context of options?

The price of an option is closely linked to that of the underlying asset. Any change in the market value of the underlying asset will result in a greater change in the price of the option. This is termed the leverage effect. It means you participate disproportionately in any rise or fall in the market value of the underlying asset.

Leverage Products

What are structured products with leverage?

Structured products with leverage enable you to achieve a leverage effect by investing less capital than you would have to if you invested directly in the underlying. This means you can benefit from short-term trends.

Structured products with leverage are suitable for short-term speculation but also for strategically hedging a portfolio.

What special risks do you need to bear in mind?

Because of the leverage effect, you need to carefully and regularly monitor the underlying, since structured products with leverage can experience a larger rise in profits but also a bigger loss than the underlying.


What is the maximum possible loss?

When you invest in a structured product with leverage, you could in the worst case lose the entire capital that you have invested.

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