Trade leverage certificates: Available markets

This means that the respective bank acts as issuer and thus both issues and distributes the leverage certificates. The best-known banks and issuers of leverage certificates in Germany are HSBC, JP Morgan and Vontobel. The leverage certificates are usually issued to online brokers through which investors can ultimately buy the leverage certificates. 

Although leverage certificates are mainly traded on the https://exnessthai.net/, it is also possible for the certificates to be issued on over-the-counter trading venues. At this point, online brokers usually do not act as intermediaries. Instead, the certificates are issued directly by the banks. In the case of parallel trading on OTC trading venues and the stock exchange, the different trading hours must be taken into account. 

Brief summary: The most important facts about leverage certificates 

When trading with leverage certificates, it is therefore possible for traders to participate disproportionately in price developments. To do this, the price of the underlying asset must be set in relation to the strike price. Risks arise primarily from the speculative approach. However, risks can be reduced thanks to upward and downward thresholds. Losses can still occur, however. 

Trading itself takes place via issuers such as Vontobel or JP Morgan. German traders can then trade the leverage certificates either directly with the issuer or via an online broker. 

The basic features of a leverage certificate are therefore clear. In the following we will take a look at how they work. 

Trading leverage certificates - How does it work? 

Trading with leverage certificates is not witchcraft, but it is speculative. For this reason, traders should know the sub-genres of leverage certificates and at the same time develop suitable trading strategies. Basically, a current price is the basis for trading a leverage certificate. Starting from this, investors bet on falling prices or rising trading prices, taking into account a leverage that makes the result disproportionate. 

In the following, I will therefore show you for whom leverage certificates are suitable, what there is to consider when trading and which tools simplify trading. 

For whom are leverage certificates suitable? 

A leverage certificate is a financial product that is assigned to risk class 7. This is due to the speculative trading method. Unlike other trading instruments, price developments can occur quickly and a price can rise or fall radically. It is therefore not uncommon for a certificate to become worthless and for the investor to suffer a total loss. It is therefore only a trading instrument that is reserved for people who like to take risks. 

Those who want to trade a share or another trading instrument do not have to do so via a leverage certificate. Trading is often worthwhile in other ways and is safer. Beginners are also advised not to trade a leverage certificate. This instrument requires expertise and a distinct trading knowledge. Only in this way can analyses be carried out successfully and returns be generated strategically. 

However, those who would like to get to grips with trading a leverage certificate as a beginner can practice trading without risk within a demo account of an online broker.