RISK OF TRADING EQUITY-LINKED NOTES (ELNs). ELNs combine notes/deposits with options and its return component is based on the performance of the underlying asset. The maximum return is usually limited to a predetermined amount of cash. You may stand to lose all his investment capital if the price of the underlying asset moves substantially against his view. Most ELNs are not low risk products. You will be taking on the credit risk of the issuer and his investment return depends primarily on the future price movement of the underlying asset(s). ELNs are structured products involving derivatives.Their maximum return is capped but the potential loss can be significant. It is important that you read all the relevant offe r documents to fully understand the features and risks of ELNs before deciding to invest.
Appears in 3 contracts
Samples: Client Agreement, Client Agreement, Client Assets Received or Held by the Licensed or Registered Person Outside Hong Kong Are Subject to the Applicable Laws and Regulations of the Relevant Overseas Jurisdiction Which May Be Different From the Securities and Futures Ordinance (Cap.571) and the Rules Made Thereunder. Consequently, Such Client Assets May Not Enjoy the Same Protection as That Conferred on Client Assets Received or Held in Hong Kong
RISK OF TRADING EQUITY-LINKED NOTES (ELNs). ELNs combine notes/deposits with options and its return component is based on the performance of the underlying asset. The maximum return is usually limited to a predetermined amount of cash. You may stand to lose all his investment capital if the price of the underlying asset moves substantially against his view. Most ELNs are not low risk products. You will be taking on the credit risk of the issuer and his investment return depends primarily on the future price movement of the underlying asset(s). ELNs are structured products involving derivatives.. Their maximum return is capped but the potential loss can be significant. It is important that you read all the relevant offe r offer documents to fully understand the features and risks of ELNs before deciding to invest.
Appears in 1 contract
Samples: Client Agreement