Eight things to know about ETP / ETF short and leveraged

Eight things to know on ETFs / short and leveraged ETFsIntroductionLeverage has existed for hundreds of years, however, the ETP and short leveraged were born in 2005. To date, the active traded onETP short and leveraged, present in most of the b important basket global of global, totaled nearly $ 51mld (ETP estimates Boost LLP). Because these types of products are characterized by the combination of leverage and daily yield compounds, these are trading tools that need to be understood thoroughly before taking any decision on whether to invest or deal in the ETP. Once included, they will emerge as highly efficient products able to offer amplified long and short exposure in one package.We’ve outlined eight essential things to know about the ETP short and leveraged.
. Yields lever yields an ETP lever allow investors to amplify the daily returns of an investment without leverage. For example, the graphs of which below show that in If the FTSE 100 marks a rise of 1% in a day, the Boost FTSE 100 3x Daily Leverage FTE (3UKL) will rise by 3% (excluding commissions and adjustments). By contrast, if the FTSE 100 falls by 1%, the FTSE 100 3x Short Boost
Daily FTE (3UKS) would rise by 3%. The lever returns
allow the investor to employ a minor amount of capital in order to obtain a similar investment (less than 2/3 in
the case of the triple-factor lever) or to amplify yields for the same investment.
(Source: Boost ETP LLP)
Boost 3x Leveraged Daily Index ETP
Boost 3x Leveraged Daily ETP

2. What indexes tracking the ETP short and leveraged?
ETPs short and leveraged provide magnified reflection to a range of indices
liquid blue-chip, published by leading index provider
world. The ETP mag indie or replicate an index developed ad hoc
3x 3x daily leveraged or short daily (such as the
ShortDAX X3 TR EUR Index) that calculates the performance lever
index, or replicate an index without a leverage effect (such as the
NASDAQ Crude Oil Commodity ER Index) for which the lever
3x daily or -3x is obtained by applying a similar formula
that used by an index short or leveraged. In any case, the effect
Economic of both the methods of calculation is identical

. How do you get the short position or lever?
If an investor purchases 3x £ 100 a Boost
Leverage Daily ETP, he will receive £ 300 exposure, constituted
from £ 100 cash and £ 200 of borrowed funds (Charged
the interbank lending rate), to reach a
investment of £ 300. The cost of the loan is deducted from
daily yield and is either incorporated or embedded in the index
ETP in the calculation of the price, so that all are ETP
calculated in a similar manner.
If investor purchases £ 100 a Boost 3x Short
Daily ETP, the following investment actually takes place: £ 300
index are borrowed and sold short. There
liquidity equal to £ 400 (£ 100 by the investor and £ 300 from the sale to the discovered the index) it is then invested to rate
interbank liquidity. The cost of the use of securities lending and
interest income on liquidity is incorporated in the calculation of
Price ETP on a daily basis, so that all ETP

5. Effect compounding
As with any investment, the returns over periods longer than
one day are affected due to the compounding effect
market movements (for example, a bank account can
capitalize the interest of several months). The exposure to the lever
Daily implies that the compounding effect will be amplified and
It will occur daily, with positive or negative impacts on
returns for more extended periods of time. If the price of the FTSE
100 is £ 100 and increases by 1%, the Boost FTSE 100 3x
Leverage Daily ETP (3UKL) salt of 3% for an amount of £ 103
(Excluding commissions and adjustments). Then, if the FTSE 100
come down 1% on the following day, then the 3UKL
drop to £ 99.91. So, the average yield, over
the two days, is 0%. However, the yield
of compound ETP on two days it amounted to –
0.09%. Even the index would have a 0% yield but its
price would be £ 99.99 and the interest yield
mixture on the two days would be -0.01%. The effect
daily compounding can step in step with the
duration of the instrument holding period, volatility
the index and the lever.
The following graph and the one on the right show the effects of
compounding returns. In the first chart ( “Volatile
Market “) and the index falls by 2% every day. After 11
days, the index rising by 1.8%, the Boost 3x Daily Leverage
ETP would only be a 4.1% rise in (2.3x the index) and 3x Boost
Short Daily ETP is down by 7.7% (-4,3x the index). The second one
graph ( “Trending Market”) shows the course of 11 days, with
A rise of 2% every day. After 11 days,
the index is up by 24.3%, the Boost 3x Daily Leverage ETP
It would rise by 89.8% (3.7x the index) and the Boost 3x Short
Daily ETP is down by 49.4% (the index -2x). However, on the basis
Daily, the Daily Boost 3x Leverage ETP and Boost 3x Short
Daily ETP marked results that exactly match
expectations. The effects and risks of daily leverage are
explained in more detail in the Prospectus Boost Issuer PLC
(Available on www.boostetp.com).

They are calculated in a similar manner.

7. Uses and trading strategies
ETPs short and leveraged Boost can be used by
a wide range of investors at numerous strategies
different trading:
 To triple the daily returns, positive or negative
(Excluding commissions and adjustments).
 To hedge existing positions with a simple
 In a long/short strategy using both a 3x boost
Leveraged ETP that a Boost 3x Short ETP.
 In a pair trading strategy (neutral) to take advantage of undervalued assets.
 In a short selling strategy on the market/asset
class that is fast, efficient and at very low cost.
 For their ability to achieve positive returns in the downward market phases.
 Tactically within a large portfolio, the result of strong convictions investor in a short-term

.Boost ETP Prodotti trutturati ETF CFD/Spread bet Future/Opzioni Sottostanti/asset class Azionario, Commodity Numerosi Non sono possibili singole commodityi Numerosi Numerosi Leva Si Si Si (solo fino a 2x) Si Si Perdita superiore all’investimento iniziale No No No Si Si Negoziazione in Borsa Si No Si No Si Molteplici Market Maker Si No Si No Si Arbitraggio Si No Si No Si Rischio di credito non garantito No Si No Si (MF Global & World Spreads) No Overcollateralizzato Si No Di solito si No No Commissioni elevate No Si No Si No Trasparente Si No Perlopiù No Si Molto liquido e negoziato in grandi quantitativi Si No Si No Si Richieste di copertura e chiusura No Si No Si Si Scadenza a breve No Si No Si Si (rinnovi e date di esercizio)

Boost ETP Products
ETFs CFDs / Spread bet Futures / Options
Underlying / asset
Many are not possible
several several
Lever Yes Yes Yes (only up to 2x) Yes Yes
higher loss
No No No Yes Yes
Trading on
Yes No Yes No Yes
multiple Market
Yes No Yes No Yes
Arbitration Yes No Yes No Yes
Credit risk
No Yes No Yes (MF Global &
World Spreads)
Overcollateralizzato Yes No No No Usually
No Yes No Yes No
Mostly Clear Yes No No Yes
Very liquid and
negotiated in large
Yes No Yes No Yes
coverage and
No Yes No Yes Yes
short deadline No Yes No Yes Yes (renewals and dates

 Innovation and agility – Boost aims to stand out
as a leader in innovation. There
quality of provided ETP, in addition to the development of
products and looking for underlying market for products
same, the witness with clarity.
 Specialized and focused on the goal – The
Boost strategy differs from that of other
ETP issuers because its goal is not to
to offer all the types of product to all
types of investors.
 Teaching – Boost is highly motivated to provide
investors with all the tools needed for the
training and developing a winning mindset
thought leadership.

Reat about ETFS

Copyright Pdextrading  CFD trading services to retail and institutional i (traders)

The main features of Boost ETP are:
 Independence – Boost ETP is an independent provider,
one of the few boutiques that do not depend on
no bank investments, swap providers, market
maker, trustee or custodian. Consequently, the
investors’ interests are aligned with those of
 Industry leaders – The founders of Boost have
He brings over 20 years of experience in the market
ETP. Thanks to their experience and solid
Boost international expertise of service providers,
investors can rely on efficient products
characterized by good liquidity, a scrupulous
management of counterparty risk and relatively cost
 Transparency – Boost public on a daily basis
on its website all the fees,
holdings and the details regarding the side.the pricing of CFDs is simple and transparent.