Examples of Leveraged Exposure in a sentence
Art des Risikos: Die ETP-Wertpapiere bieten ein Leveraged Exposure gegenüber den Referenzaktiva.
The return payable on ETP Securities which provide for a Normal Exposure or Leveraged Exposure to the related Reference Assets may not reflect the return an investor would realise if it actually owned the relevant Reference Assets underlying such Investment Strategy.
As such, the effective level of Leveraged Exposure or Short Exposure offered by such ETP Securities, as the case may be, will vary on each day of the Rebalance Period as prices of the Reference Assets fluctuate and subscriptions and redemptions are fulfilled by the Issuer on a daily basis.
Similarly, if an investor holds ETP Securities offering Leveraged Exposure or Short Exposure for longer than their Rebalance Period, the return of such ETP Securities over that holding period will likely differ from the return of the Reference Assets over such holding period multiplied by the Leverage Factor of the ETP Securities.
What this means is that, for example, in the case of a Leveraged Exposure, where the value of the Reference Asset decreases during the Rebalance Period, the exposure of the ETP Securities of such Series to the Reference Assets will increase (i.e., the effective leverage exposure to the Reference Assets will be greater than the stated Leverage Factor of the ETP Securities), which may negatively impact the value of the ETP Securities.
For example, in the case of a Series linked to an Index providing a Leveraged Exposure to the related Reference Assets, if the price of the relevant Reference Assets was to reverse its fall after the unscheduled rebalancing, then the holder of the relevant ETP Security will not benefit from the reversal of the price decline of the Reference Assets to the same extent that it might have if the unscheduled rebalancing had not occurred.
Such unscheduled adjustment seeks to protect the holder of ETP Securities providing Leveraged Exposure or Short Exposure in the event of extreme market movements during Rebalance Periods by crystallising the losses incurred up to that point.
At the end of each Rebalance Period, where relevant, the Portfolio Administrator will instruct the Margin Loan Provider to buy or sell Reference Assets in such amounts as may be required so that, at the beginning of the immediately following Rebalancing Period, the ETP Securities offer their Leveraged Exposure or Short Exposure to the Reference Assets determined by their stated Leverage Factor.
Tipo di esposizione: I titoli ETP offrono un Leveraged Exposure ai Reference Assets.
The following is a description of the manner in which the exposure to the relevant Reference Assets will be generated when the ETP Securities provide a Leveraged Exposure and Short Exposure to Physical Assets and futures contracts.