DIY Investor Magazine
/
2015 Issue
11
want to invest, what you want to trade and how
much risk you want to take.
DAILY
LEVERAGE
INFINITE
TURBOS
COVERED
WARRANTS
Objective
Multiply the
daily perfor-
mance of the
Underlying
Asset by 5
Boost returns
from
the rise or
fall of the
markets
Boost returns
from the rise
or fall of the
markets.
Market
conditions
Rising or
falling
Rising or
falling
Rising or
falling
Leverage
5 times
3 – 15 times
Up to 50
times
Current
range
FTSE 100 TR Variety of
Indices
All asset
classes
Typical
term
Short / One
day
Up to 6
months
Up to 12
months.
Risk profile Losses can
exceed a
direct invest-
ment in the
underlying
but not initial
capital
Losses can
exceed a
direct invest-
ment in the
underlying
but not initial
capital
Losses can
exceed a
direct invest-
ment in the
underlying
but not initial
capital
LEVERAGE
ETPs
T
R
A
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P
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N
C
Y
F
L
E
X
I
B
I
L
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T
Y
L
I
Q
U
I
D
I
T
Y
S
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M
P
L
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C
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T
Y
Leveraged ETPs
are fully regulated
investment products
created by an
investment bank
such as Societe
Generale, and listed
on the London
Stock Exchange.
They are easy to
trade with live buy
and sell prices published on exchange throughout
market hours, delivering absolute transparency
over your investment. Everyone sees the same
price whether they are a professional trader, or
private investor.
Furthermore, Leveraged ETPs are not only
governed by the rules of the Financial Conduct
Authority, but the rules of the LSE, which are
designed to ensure that prices are continuously
available and fair.
There is no need to open an additional account,
Leveraged ETPs can be traded in an existing
stock broking account, just like a share (subject
to an appropriateness test, much the same as
you would with a CFD or spread bet).
LOOKING AT AN EXAMPLE; INFINITE TURBOS
Infinite Turbos are the latest edition to Societe
Generale’s range of Leveraged ETPs. They
can be linked to a single stock, an index, a
commodity or a currency pair. However, instead
of paying the full cost of buying it outright, an
Infinite Turbo allows you to benefit from its full
price movement with only a fraction of the capital
invested - much like our mortgage example
earlier. This creates a powerful leverage effect
that can be used to enhance returns, reduce
your capital at risk, or hedge an existing share
holding.
There are two types of Infinite Turbos. If your
view is bullish, and you expect the market to
rise, you could amplify your potential returns with
an Infinite Long. If your outlook is bearish, and
you expect markets to fall, you could look to the
range of Infinite Shorts.
A key feature of all Infinite Turbos is the Knock
Out Level which works as a built in stop loss
mechanism, and ensures that you can never lose
more than you invest.
INFINITE LONG
RISE IN VALUE AS
MARKETS RISE
INFINITE SHORT
RISE IN VALUE AS
MARKETS FALL
PERHAPS MOST IMPORTANTLY, WE WILL
ALSO DEMONSTRATE THAT WITH THESE
‘LEVERAGED ETPS’ YOU WILL NEVER
LOSE MORE THAN YOU INVEST.
