8/3/2019 Building a Fixed Risk Strategy

1/6

WHiCH tYPe of ProDUCt

is for me?

s, yu h dcdd h yu w h chc pplly

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h pbly l l . th b yu u

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h pduc cply v h pw .

take a simPLe vieW WitH sUPer10

sup10 by h pl h h pduc. thy ubl wh 3-6 h w h l

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h cul pc h udly; ju h d

p-dd B Ll huhu h whl pd

h .

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wh . rdl whch yp yu ch, h

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dly.

th l sup10 bd ld h ftse 100

id. th ub sy Hh, sy Lw d r

pduc ch udly, ll wh d B Ll.

th cl h udly B Ll, h chp

h pduc, d h h hh h u. Hw,

yu h pc, h pl u l cpd h

pl , yu h b cbl h h udly

wll h h ll. Yu chc wll dpd hw uch

yu w .

Super10s

Turbo

Covered

Warrants

leVel

ofgearing

sophistiCation

Ben thompson Building a fixed risk trading strategy

The single most important factor when deciding your trading strategy is your market view; what do you

expect to happen? Once you have decided that, the process of selecting a product is almost entirely

driven by your appetite for risk, and how sophisticated you want to get with your product. This may all

sound very simple but with 85 different underlying markets and 688 products split across our range of

Covered Warrants, Turbos and Super10s, its not always easy to steer your way through this vast world

of choice. In this article we hope to break down that choice and make it easier for you to find a product

that reflects your view and risk appetite.

BUILDING A

FIXED RISKTRADING

STRATEGY

8/3/2019 Building a Fixed Risk Strategy

2/6

Leverage a rising or

faLLing market WitH tUrBos

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t367 wll pyu 1.10,

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by ubc h s Pc (4,500)

h Udly id Ll (5,600)d dd by Py (1000): 5,600

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W c cp h t369 whch

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th y p h h c

ch tub bd h ddul

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Underlying Type Strike KO Expiry Parity EPIC ISIN

ftse 100 L 4,500 4,500 16 Dc 11 1000 t367 CWn8138J7474

ftse 100 L 4,600 4,600 16 Dc 11 1000 t368 CWn8138J7391

ftse 100 L 4,800 4,800 16 Dc 11 1000 t369 CWn8138J7219

Building a fixed risk trading strategy Ben thompson

*a 6h ocb, 2011

8/3/2019 Building a Fixed Risk Strategy

3/6

8/3/2019 Building a Fixed Risk Strategy

4/6

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DESCRIPTION CALL WARRANT PUT WARRANT INTRINSIC VALUE PAYOUT AT EXPIRY

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Building a fixed risk trading strategy Ben thompson

8/3/2019 Building a Fixed Risk Strategy

5/6

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Ben thompson Building a fixed risk trading strategy

8/3/2019 Building a Fixed Risk Strategy

6/6

CHeCk tHe risk

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bl wh du y ul h l ll p .

i huld h hld h pduc wll b cd

by h p h fcl sc Cp sch, by

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Building a fixed risk trading strategy Ben thompson

Ben Thompson

Director, Marketing &

Partnerships, ETPs UK

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