Common use of Gearing risk Clause in Contracts

Gearing risk. Exchange-traded derivative products such as derivative warrants and callable bull/hear contracts are leveraged and can change in value rapidly according to the gearing ratio relative to the underlying assets. Investors should be aware that the value of an exchange-traded derivative product may fall to zero resulting in a total loss of the initial investment.

Gearing risk. Exchange-traded derivative products such as derivative warrants DWs, CBBCs and callable bull/hear contracts Leveraged and Inverse Investment Products are leveraged and can change in value rapidly according to the gearing ratio relative to the underlying assets. Investors should be aware that the value of an exchange-traded derivative product may fall to zero resulting in a total loss of the initial investment.