Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What are the risks linked to investing in Turbos?

April 26, 2017Investing linked turbos

0

Posted

What are the risks linked to investing in Turbos?

1 Answer

0

Posted

Because of the leverage, investing in Turbos is riskier than direct investment in the underlying asset. If the price of the underlying asset reaches or exceeds the stop-loss limit, the Turbo is automatically unwound and the residual value paid to the investor. In such cases, you may lose your entire investment. If you invest in a Turbo for which the underlying asset is listed in foreign currency, exchange-rate fluctuations may have a negative impact on the price of the Turbo.