Examples of Short Exposure in a sentence
Short Exposure: Prospective investors should be aware that the ETP Securities provide short exposure to the performance of the Reference Asset, and as a result price rises in the relevant Reference Asset will generally result in a fall in value of the ETP Securities.
Art des Risikos: Die ETP-Wertpapiere bieten ein Short Exposure gegenüber den Referenzaktiva.
Tipo di esposizione: I titoli ETP offrono un Short Exposure ai Reference Assets.
Similarly, in the case of a Series providing for a Short Exposure to the related Reference Assets, if the price of the relevant Reference Assets was to fall after the unscheduled rebalancing, then the holder of the relevant ETP Security will not benefit from the reversal of the price of the Reference Assets to the same extent that it might have if the unscheduled rebalancing had not occurred.
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.
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.
Where the Series of ETP Securities provides a Short Exposure, this means that the ETP Security Value will increase on any day on which the value of the Reference Assets decreases, and will decrease if the value of the Reference Assets increases on such day (in each case excluding the effects of any applicable fees and adjustments).
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.