Equity Blue

After a series of articles on the topic of bonus certificates let us have a more detailed insight into the area of trading instruments that are using the leverage effect. Similarly as the bonus certificates these instruments and structured products can be traded on stock exchanges in Germany and thus they can be easily traded through majority of brokerage houses and companies. Leveraged instruments generally offer investors the opportunity to generate an above average yield thanks to the leverage effect. In real life it means that the movement of the price of an underlying asset by one percentage point means a change of the value of a leveraged instrument by a certain multiple. For example, a structured instrument with a leverage of 1:5 changes its value five times more than is the actual change of the value of the underlying asset itself. With these instruments investors can bet on growth of the value of an underlying asset or its decrease. The nature of these instruments mak