BNP Paribas further integrates its range of certificates with the new Turbo Unlimited on the Porsche stock which can already be purchased on the SeDeX (MTF) of the Italian Stock Exchange. In fact, negotiations for the Porsche stock have begun todaythe iconic sports car brand, after Volkswagen yesterday set the price at 82.5 euros per preferred share, valuing the company 75 billion euros, thus making it the most successful IPO of the last decade in Europe.
Before the start of the negotiations, the reactions were positive and “the great demand shows investor confidence in the future of Porsche,” he said. Arno face, Chief Financial Officer of Volkswagen. The listing of the shares should give Porsche a financial boost of 19.5 billion euros, and always according to Antlitz gives the company “greater financial flexibility in terms of electric vehicles and digitalization”. Despite everything, there are many challenges, in fact, this listing comes at an unstable market moment as the automotive industry continues to suffer from the effects of the war in Ukraine and the valuations of other luxury car manufacturers including Aston Martin, Ferrari, BMW and Mercedes-Benz have all declined in recent months.
How Turbo Unlimited works
The name “Unlimited” derives from being “open end”, that is they have no deadline. In this way, the investor can fully utilize the potential of dynamic leverage, thus avoiding the compounding effect typical of fixed leverage products and, therefore, take advantage of constant financial leverage for as long as he deems appropriate. Turbo Unlimited, tradable on the SeDeX market (MTF) of Borsa Italiana, they are suitable for trading and portfolio hedging strategiesand allow you to invest with leverage by taking advantage of the possibility of taking an upward (Turbo Unlimited Long) or downward (Turbo Unlimited Short) position, with a lower use of capital.
Furthermore, these products allow to amplify the movements of the underlying thanks to the use of financial leverage and, unlike certificates or fixed-lever ETFs, they are not affected by the compound interest effect: the investor in fact decides at the moment of the investment the financial leverage, which remains unchanged until the closing of the position, and not only on the single trading day. In fact, in Fixed Leverage, the financial leverage is fixed only on a daily basis and the performance is recalculated every day on the basis of the closing level of the underlying reference of the previous business day.
The theoretical price of the Turbo Unlimited Long reflects the difference between the price of the underlying and the strike level, i.e. the value of the underlying established at the beginning of the life of the product that determines the leverage effect. In a specular way, to calculate the theoretical price of the Turbo Unlimited Short we consider the difference between the strike and the price of the underlying. In Turbo Unlimited the strike corresponds to the deactivating barrier, a value that is updated daily based on the cost of the loan: once reached, the value of the certificate is zeroed. However, this barrier can also be considered as an “automatic stop loss” for those investors who are unable to impose a rigorous loss-cutting strategy, which is essential in trading.
More information on BNP Paribas’ Turbo Unlimited Certificate range can be found at https://investimenti.bnpparibas.it/certificates-leva/turbo-certificate