What Is an Investment Certificate?
The net price investment certificate is actually a kind of warrant, that is, a warrant. Issued by a qualified financial institution, it can be linked to stock indexes, currencies, commodities or a basket of securities, giving holders the right to buy or sell certain assets. As with the investment round, most people only use the net price investment certificate as an investment tool to win the difference. They do not want to get linked assets, so the net price investment certificate is also settled in cash.
Net Price Investment Certificate
Right!
- Net price investment certificate is actually a kind of
- Net price investment certificate is actually a kind of
- However, unlike Warrants, the net price investment certificate has no leverage effect.
- Investors who are familiar with Warrants know that Warrants can bring "four to two thousand dollars" effect. The exercise price of the Warrants is very close to the price of the linked assets, and the difference between the purchase and sale is the price. The price of the Warrants per share is only a few cents or a few dollars, and the price of the linked assets may be as high as tens of dollars or even hundreds of dollars. Because the price of Warrants is low, small changes in the price of linked assets will cause large fluctuations in the price of Warrants. Investors only need to pay a small sum of money on Warrants to obtain returns that are much higher than the volatility of the relevant assets. .
- Investing in a net price investment certificate is unlikely to produce this effect, because the exercise price of the net price investment certificate is close to zero, and its price is almost the same as the value of the linked asset, so the range of change is almost the same. Whether investors make money or lose money depends on the performance of the linked assets.
- For the warship, only the inner price warship is valuable, and the price or out of price warship is worthless when it expires, which is equivalent to a piece of waste paper. As for the net price investment certificate, because the exercise price is close to zero, which is much lower than the current price of the linked asset, it is deep in the price and there is no risk of worthlessness. Generally speaking, the greater the increase in the net-price investment certificate-linked assets, the further away from the strike price, the higher its price.
- In a sense, investment net investment certificates, more like investment exchange-traded funds (ETFs), are highly transparent, non-leveraging products.
- Linking unique assets
- When the stock market is booming, investors are fond of high-risk, high-return nests, but as the market declines, investors' expectations of returns have also been adjusted to a reasonable level, focusing on reducing risks and stabilizing returns.