For the first time Societe Generale makes available on the SeDeX segment of the Italian Stock Exchange the Fixed Leverage Certificates on Shares and Precious Metals with Open End expiration, that is, not predetermined. The leading bank on Borsa Italiana in the segment of fixed-lever certificates with 71.4% of the exchange value thus renews the range offered on SeDeX with 81 new Certificates 5x Fixed Leverage (Long or Short) on Shares and 6 new 7x Fixed Leverage Certificates (Long or Short) on Precious Metal Futures.
The range includes underlyings already employed and new equity underlyings that allow us to take a position on companies active in the main new trends that are changing our daily lives and will impact the future of our planet, such as semiconductors, electric mobility, the space economy and cryptocurrencies. Among the shares listed in Italy we find as novelties Ferrari, FinecoBank, Inwit and Leonardo, while among the big Europeans the new entries are Airbus and Infineon Technologies. As for the American market, Societe Generale has enriched the choice of underlyings with Activision Blizzard, Alibaba, AMD, Boeing, CoinBase, NIO, NVIDIA and Virgin Galactic. News also for the Futures on Precious Metals with Platinum that is added to the Fixed Leverage products on Gold and Silver.
“This new issue confirms Societe Generale’s desire to offer a constantly updated range that takes into account the evolution of the market: renewing the existing range and also trying to satisfy the needs of those who want to leverage on some of the main trends of the moment. ” commented Costanza Mannocchi, Head of Exchange Traded Products of Societe Generale in Italy.
How Fixed Leverage works
Societe Generale’s Fixed Leverage Certificates indicatively replicate (gross of costs, taxes and other charges) the daily performance of the underlying multiplied by the positive or negative fixed leverage. Fixed Leverage is recalculated every day and is valid only intraday and not for periods of time longer than a day. The daily rebasing of the leverage causes the so-called compounding effect (effect of the compound performance) and therefore over a period longer than a single trading session on the stock exchange, the performance of the Fixed Leverage Certificates may differ significantly from the performance of the underlying multiplied by the leverage. (positive or negative).
In the case of extreme and adverse market movements, a automatic mechanism for intraday adjustment of the lever. This mechanism is aimed at preventing the value of the product from becoming negative, however in some market circumstances it does not prevent the value of the product from falling to zero.