UniCredit Bank has launched the first range of Turbo Open Ends on the major American stocks, dedicated to traders who operate on the SeDeX-MTF market of Borsa Italiana in addition to the over 800 Turbo type tools already listed on the SeDeX of Borsa Italiana.
In detail, with this issue UniCredit makes available to Italian investors a series of products that allow them to take leveraged positions, both Long and Short on major American stocksthe. In fact, the underlyings of the new Turbo Open Ends listed on the Italian market include Apple, AMD, Amazon, Alphabet Class C, Meta Platforms, Microsoft, Netflix, Nvidia, Paypal e Tesla.
How do they work
The Turbo Open Ends are Certificates that allow you to take a Leverage position (both Long and Short) on the performance of the underlying reference. Unlike products that have a fixed leverage (such as Leveraged ETFs or Fixed Leverage Certificates) are not subject to the compounding effector the effect of compound interest, which makes them efficient if held in the portfolio only for a single trading day.
Thanks to the Turbo Open Ends, however, it is possible to maintain the desired leverage constant for the entire trading period, whether it is one day or one week. Turbo Open Ends are defined Dynamic leverage certificate as the level of Leverage is variable, as it depends on the distance between the level of the underlying and the Turbo Strike. The Strike is a distinctive element and corresponds to the part of the investment in the underlying which is financed by the Issuer.
Also, it Strike coincides with the Knock-out Barrier level of the Certificate: if, at any time, the prices of the underlying reach or exceed this value, the Certificate is terminated early with a total loss of the invested capital. THE Turbo Open Ends therefore come with an implicit stop losswhich prevents the investor from losing more than the capital invested.
Unlike Turbo Closed Ends, Turbo Open Ends do Strike is fixed at the time of issue but does not remain constant throughout the life of the Certificate, is in fact updated daily to reflect the implied financing cost of the product: the Strike level will therefore increase daily for bullish products (Call) and decrease for bearish products (Put). The second difference compared to the Turbo Closed Ends is that the Turbo Open Ends have no set expiration date.
The segment dedicated to these products on the SeDeX-MTF market of Borsa Italiana was the only segment linked to leveraged products that recorded growth in 2022 compared to 2021, reaching a total trading value of almost 2 billion euros, evidence of the growing interest of private investors and financial advisors, both for trading and portfolio hedging strategies.
In this sense, UniCredit aims to be a reference issuer and offer traders and investors a complete and efficient range of products, thanks to the issuance platform it is able to quickly integrate the range both in terms of new underlyings and strikes. Further information on the products can be found on the website www.investimenti.unicredit.it
