What are financial instruments?

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If you want to generate additional income you have to behave like the big banks by buying financial instruments
 

LEVEL A INSTRUMENTS – IF YOU ARE A NOVICE

If you simply want to generate additional income on a steady basis, with a banking professional who follows you step by step. The financial tools we will send you are the simplest. Here they are listed below.
ETF
Exchange Traded Fund

It is a mutual fund or SICAV (Investment Company with variable capital) listed and tradable on a regulated market.

The main features of ETFs are that they are quick and easy to invest and disinvest. Other advantages are the low management fees, the diversification and reduction of risk, the transparency of quotations that are calculated and provided in real time and the possibility of being able to replicate the performance of a stock market index.

Therefore, the value of this debt security will increase as the value of the reference index increases, and decreases as the value of the reference index decreases, procuring potential gains or losses proportional to this increase or decrease.

(I.E. If the italian FTSE MIB index rises, the ETF will rise accordingly as it refers to this index, and the value of the FTSE MIB drops, the ETF will fall accordingly)

Risks. The risks associated with ETFs are those that derive from fluctuations in financial instruments, such as the index or basket in which one invests and as well as others inherent to ETF. Among these are:

–  that the issuer of this instruments applies fees, expenses and interest that may weigh on the ETF’s price on equal terms;

–  that some types of ETFs may include an implicit leverage mechanism that involves an invested value greater than the liquidity employed and therefore also a multiplied risk;

– that in certain market conditions an ETF may find itself in a situation of poor liquidity which would expose it to the risk of not being able to liquidate the position held at the desired conditions.

ETN
Exchange Traded Note

It is a simple debt security listed and negotiable on regulated markets.

This security allows you to partecipate in the price changes of the stock index or the basket of stocks to which it refers. Therefore the value of this debt security will increase as a consequence of the increase in the value of the stock index or of the basket to which it refers and will decrease as the value of the share index or basket to which it refers decreases, procuring potential gains or losses proportional to these increases or decreases.

(I.E. Also here, as for ETFs, if the italian FTSE MIB index rises, the ETN will consequently rise as it refers to this index, and the value of the FTSE MIB drops, the ETN will fall accordingly)

Risks. The risks associated with ETNs are those that derive from fluctuations in financial instruments, such as the index or basket in which one invests and as well as others inherent to ETNs. Among these are:

– that the investor becomes a creditor of the bank that issues the ETN;

– that the issuer of the instrument applies fees, expenses and interests that may affect the ETN’s price on equal terms;

– that some types of ETNs may include an implicit leverage mechanism that involves a value invested greater than the liquidity employed and therefore also a multiplied risk;

– that in certain market conditions an ETN may find itself in a situation of poor liquidity which would expose it to the risk of not being able to liquidate the position held at the desired conditions.

STOCKS/SHARES

They are also a type of security listed and negotiable on regulated markets.

More simply, they are securities that represent a share or stock of the risk capital of a joint-stock company.

As such it allows you to partecipate in the economic results of the joint-stock companies of which you become a shareholder, and concerns the right to partecipate in the shareholders’ meetings of the companies and to exercise the right to vote on corporate metters reserved for shareholders.

We handle only the most liquid stocks in our service and they are listed on regulated markets.

Risks. Typical risks of Stocks and Shares are as follows:

– that the investor buying a share becomes a shareholder of the company that issues it and partecipates in the profits and losses of that company and may, in a crisis could incur losses or lose the entire liquidity invested;

– that price fluctuations can reduce the investment more than desired in the absence of stop-losses or adequate  quantities;

– that in certain market conditions a stock or share may be in a situation of scarce liquidity which would expose it to the risk of not being able to liquidate the position held at the desired conditions.

LEVEL B INSTRUMENTS – IF YOU HAVE SOME EXPERIENCE
You would like help in doing what you already do but with the added security that the probabilities provide and with total control of the losses that professionals use whilst having the opportunity to generate constant additional income.

The financial instruments that we can send you will also be:

THIRD-COUNTRY STOCKS/SHARES

They are securities that represent a share of the risk capital of a joint-stock company.

As such it allows you to partecipate in the economic results of the joint-stock companies of which you become a shareholder, and concerns the right to partecipate in the shareholders’ meetings of the companies ant to exercise the right to vote on corporate matters reserved for shareholders.

We handle only the most liquid stocks in our service and they are listed on regulated markets.

The difference with the beginner level is that extra national stocks/shares are dealt with.

Risks. The risks associated with the Stocks/Shares of third countries are the same as those of one’s own country, to which we need to add the following risks:

– that the country in which the issuing company is based faces crisis conditions which also impacts the issuer;

– that if the share is denominated in a currency other than that of the investor’s country, changes in the exchange rate could impact the value of the investment.

LEVEL C INSTRUMENTS – IF YOU ARE A PROFESSIONAL OR AN EXPERT
You want exceptional and constant performance, better than that which you normally used to.

The financial instruments that we can send you will also include:

CFD
Contract for difference

This type of financial instrument is a derivative (Contract for difference). This tool allows you to exchange, through a financial intermediary, other financial instruments without actually owning them and the contract with the financial intermediary represents the difference between the value of a specific financial instruments at the time of purchase and the value of the underlying instrument at the time of the sale. In short, the difference between the buying value and the selling value would represents the possible gain or possible loss.

Risks. The risks associated with CFDs are those that derive from fluctuations of the underlying and others affecting CFDs. Among these are:

– that the financial leverage associated with this instrument implies a greater investment than the liquidity employed and is therefore a multiplied risk;

– that the financial intermediary which issues the CFD does not guarantee execution at the price or for the desired quantity;

 – that the financial intermediary becomes insolvent;

Summing up
ETN
ETF
NATIONAL STOCKS/SHARES
THIRD-COUNTRY STOCKS/SHARES
CFD
FOREX
FUTURES
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