| Warrant |
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Warrants are securities that can provide a much higher return than, for example a traditional stock investment. If you have an idea of how the development of an underlying security will be, you can instead buy warrants which are associated with this investment and have a leverage of your investment.
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| Market Expectations |
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Call warrants: Rising underlying, rising volatility |
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Put warrant: Falling underlying, increased volatility |
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| Properties |
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Small investment generating a leveraged performance relative to the underlying |
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Increased risk of total loss (limited to initial investment) |
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Suitable for short term speculation or hedging |
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Daily loss of time value (increases as product expiry approaches) |
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Continuous monitoring required |
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| If you want to learn more about this instrument, you can do it at www.ndx.se/education/. |
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