13/05/2022 14:51
Recently, ‘historical’ passive instruments on indices and commodities have been joined by those on individual securities, of which Leverage Shares is a precursor. They allow you to take a position – even with very low capital – on individual stocks, in a long or short key, benefiting from a leverage that amplifies the movement.
What are the tips for consciously handling levered instruments?
They are sophisticated tools and suitable for advanced traders and investors able to understand how they work or supported by a consultant. The big advantage of leveraged ETPs is that they are publicly traded, which makes them easier to liquidate than CFDs. Obviously, they involve risks, which can be mitigated by choosing low leverage and favoring physically replicated leveraged ETPs, where the capital is invested directly in the underlying shares, without swaps or derivatives.
How does the Leverage Shares offer stand out?
Since inception in 2017, Leverage Shares aims to meet the demand for safer, more transparent, liquid and easily accessible leveraged instruments. Today it is the only player in Europe to use physical replication for these products, a very solid competitive advantage. Our ETPs are UCITS eligible, they can count on the market making activity of BNP Paribas and offer the possibility to benefit, at the same time, from the advantages of products listed on regulated markets and the advantages of physical replication, which eliminates the risk of bank credit.
Which products do you think will attract the interest of Italian traders and investors the most?
When we debuted on Borsa Italiana in February of this year, we chose to focus on 15 single-stock ETPs, convinced that traders and investors know how to appreciate the advantages of leveraged products listed on the stock exchange. Our range available on different European markets is wider and consists of over 140 ETPs across 43 stocks and 14 thematic and sector indices.