When going short, theoretically an investor can lose an infinite amount (if the stock price keeps going up). With these products, investors can never lose more than the amount invested (the price would just go to 0 if the stock being tracked key going up).
Hedge
Go short
Use long/short strategy
*Disclaimer: I have a business relationship with Leverage Shares. The aforementioned is NOT investment advice and is for informational purposes only.
Flagged this one as spam, under self advertisement category. @Oktay can you please stop this act of continuous shameless plug These are risky products and your posts do nothing but ābaitā failry new retail investors.
I appreciate your feedback. Indeed, trading these - like trading in general, involves risk. Iād be happy to remove if the post is considered āspam.ā
I am answering previously asked questions and trying to clarify how these products work so that people are aware of the mechanics prior to investing/trading blindly.
I donāt see any problem. @Oktayis just pointing towards ETPs available on T212. I have more a problem with people promoting their websites and YouTube channels outside the designated area in the community forums.
yes those are definitely like tumors, but this above post is also precisely advertisement.
further more, this is a forum not a legally regulated environment. so statements like this:
go unchecked and give a false sense of security to new investors. In reality when you short a product either by borrowing, on margin or by ETPs you can loose all your investment. Yes theoretically you can loose infinite amount of money on margin, but no broker will allow you to go into minus funds. youāll get margin called and get liquidated under a certain threshold.
Thanks for the hint, didnāt see his profile before.
Would have been nice to see disclaimer at the top or bottom of the post, disclosing his affiliation. More transparent that way.
But in the end I donāt believe it is spam, he is introducing and educating about ETPs that are already on the platform, like we also do all often, though not with an affiliation or conflict of interest.
Look I get it, of course heās going to promote his company, and the way heās put it itās not really an issue about āself-promotingā, as heās educating and not just spamming for clicks or advertising.
The issue I see is itās a random post about them, not in response to an actual question. This would be perfectly fine imo as a reply to someone asking about them, but as a stand-alone postā¦ it seems more orientated towards self promotion. But I donāt really care, just ignore it if you donāt care.
On a different note, is there anyway of getting a Nikola short? Iām not comfortable opening CFD but Iād love to have this available for this fraud (imo )
Iām just wondering if youād be able to get rid of these -1x ETPs if things start going against you. Barely any volume here. How long would it take to sell like ā¦ 1,000 shares? This is the -1x AMD one.
I have added a disclaimer to the post at the bottom in bold, in addition to the one I already mention in my profile.
I decided to make a separate topic due to previous questions (about inverse ETPs) in multiple posts - just to aggregate them. I feel it adds value since, although I mentioned the Leverage Shares products here, the concept is the same for products (like market index trackers) by other providers like Xtrackers, WisdomTree, etc.
Once again, if considered spam - Iād be happy to remove.
There is a market maker taking both sides (buy & sell) throughout the day - BNP Paribas in this case. Even for institutional sizes ($ millions), liquidity should not be an issue.
This is how ETPs (and ETFs) work in general, since they are open-ended products. There are whatās called dedicated market makers (DMM) that are obliged to provide tight quotes throughout the trading day.
Even if the ETP (or ETF) itself has low volume or assets under management, these market makers will take both sides of the trade since they can always offset by creating or redeeming in the āprimary market.ā This is why itās very important for the ETPs to have very liquid underlying stocks.
And if you donāt mind explaining, @Oktay, how are these quotes derived for UK instruments when the subject of the ETPās (eg. Tesla or Apple) market is closed?
Iām aware this is more general ETF/P-related question but itās an area I have very little understanding of. Guessing itās derivative-related, but again, my knowledge of derivatives is zero, so appreciate any insight into this. Thanks
PS. I have Googled this but canāt find a satisfactory answer.
Since a market maker HAS to make markets (they buy when someone wants to sell, and sell when someone wants to buy) - they will either end up with an inventory of ETF/ETPs or be short ETF/ETPs.
Hereās the caveat - MMs donāt want risk. So when they are long or short any product, they have to hedge. In the case of typical index ETFs (like S&P 500 or Nasdaq-100 that trade in Europe), theyād most likely hedge with futures given they trade around the clock. In the case of these ETPs, they hedge with the GDRs (global depository receipts) that trade in Germany (see ticker TL0 for Tesla and APC for Apple). For example, if the market maker (MM) is long the Tesla ETP it bought from you, it will offset this by being short the Tesla GDR - bringing it to a neutral position.
This then begs the question - how are GDRs priced? Just like many depository receipts in the US (like Alibaba), they use price movements in the home market, news that come out after market closes, and demand/trading where the depository receipt itself trades. This is whatās called a price discovery mechanism, b/c trading elsewhere gives a relatively good idea about how the stock will resume trading in its āhome market.ā
I think the post below could provide some clarifications (you need to scroll down a bit to my response to libreus).
He must be a friend of @Team212 otherwise he would have been banned a long time ago by mods. Just had a look to his profile and posts. The guys is essentially here to sell his lousy leveraged products.
I just spent the time to read every post by @Oktay on this forum. I did not see advertising in any of the posts.
There is a report button on each post. If you feel that what you are reading is an ad please use that button. Posting unfounded accusations is just off-topic
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