Volatility risk. Prices of derivative warrants can increase or decrease in line with the implied volatility of underlying asset price. Investors should be aware of the underlying asset volatility.
Volatility risk. Prices of DWs can increase or decrease in line with the implied volatility of underlying asset price. Investors should be aware of the underlying asset volatility.
Volatility risk. Prices of derivative warrants can increase or decrease in line with the implied volatility of underlying asset price. The Customer should be aware of the underlying asset volatility. Limited Life: Unlike stocks, derivative warrants have an expiry date and therefore a limited life. Unless the derivative warrants are in-the-money, they become worthless at expiration. Deeply out- of-the-money warrants are less sensitive to movements in the price of the underlying asset because such warrants are unlikely to become in-the-money on expiry.
Volatility risk. Prices of DWs and CBBCs can increase or decrease in line with the implied volatility of underlying asset price. Investors should be aware of the underlying asset volatility.
Volatility risk. Prices of derivative warrants can increase or decrease in line with the implied volatility of underlying asset price. Investors should aware of the underlying asset volatility. Some Additional Risks Involved in Trading CBBCs. Mandatory call risk Investors trading CBBCs should be aware of their intraday “knockout” or mandatory call feature. A CBBC will cease trading when the underlying asset value equals the mandatory call price / level as stated in the listing documents. Investors will only be entitled to the residual value of the terminated CBBC as calculated by the product issuer in accordance with the listing documents. Investors should also note that the residual value can be zero. Funding costs The issue price of a CBBC includes funding costs. Funding costs are gradually reduced over time as the CBBC moves towards expiry. The longer the duration of the CBBC is, the higher the total funding costs. In the event that a CBBC is called, investors will lose the funding costs for the entire lifespan of the CBBC. The formula for calculating the funding costs are stated in the listing documents. Some Additional Risks Involved in Trading Linked Instruments Exposure to equity market Investors are exposed to price movements in the underlying security and the stock market, the impact of dividends and corporate actions and counterparty risks. Investors must also be prepared to accept the risk of receiving the underlying shares or a payment less than their original investment. Possibilities of losing investment Investors may lose part or all of their investment if the price of the underlying security moves against their investment view. Price adjustment Investors should note that any dividend payment on the underlying security may affect its price and the payback of the XXX at expiry due to ex-dividend pricing. Investors should also note that issuers may make adjustments to the XXX due to corporate actions on the underlying security. Interest rates While most XXX offer a yield that is potentially higher than the interest on fixed deposits and traditional bonds, the return on investment is limited to the potential yield of the XXX. Potential yield Investors should consult their brokers on fees and charges related to the purchase and sale of XXX and payment / delivery at expiry. The potential yields disseminated by Hong Kong Exchanges and Clearing Limited have not taken fees and charges into consideration. Risks of client assets received or held outside Hong Kong Clien...
Volatility risk. Volatility refers to the dynamic changes in price that securities undergo when trading activity continues on the stock exchange. Generally, higher the volatility of security, greater is its price swings. There may be normally greater volatility in thinly traded securities than in active securities. As a result of volatility, orders may only be partially executed or not executed at all or the price at which the order gets executed may be substantially different from the last traded price or change substantially thereafter, resulting in notional or real losses.
Volatility risk. Volatility risk is the risk of changes in the value of financial product in any direction. High volatility generally means that the values of securities/contracts can undergo dramatic upswings and/or downswings during a short period. Such a high volatility can be expected relatively more in illiquid or less frequently traded securities/contracts than in liquid or more frequently traded one. Due to volatility, the order of a customer may not be executed or only partially executed due to rapid change in the market be solely responsible for the same and PSX or Securities and Exchange Commission of Pakistan (SECP) prices. Such volatility can also cause price uncertainty of the market orders as the price at which the shall not be held responsible/liable, in any manner whatsoever, for such negative consequences or losses. The customers must acknowledge and accept that there can be no guaranteed profit or guaranteed return on their invested capital and under no circumstances a broker can provide customers such guarantee or fixed return on their investment in view of the fact that the prices of securities and futures contract can fall as well as rise depending on the market conditions and performance of the companies. Customers order is executed can be substantially different from the last available market price or may change significantly thereafter, resulting in a real or notional loss.
Volatility risk. The prices of cryptoassets have historically been subject to dramatic fluctuations and are highly volatile, and the market price of the TTT NFT may also be highly volatile, despite being linked to the Physical Asset. Several factors may influence the market price, if any, of the TTT NFT, including: (i) the ability (if any) of the TTT NFT to trade on a secondary market; (ii) global digital asset and token supply; (iii) the demand for cryptoassets, which can be influenced by the growth of retail merchants’ and commercial businesses’ acceptance of cryptoassets; (iv) the security of online cryptoasset exchanges and wallets that hold cryptoassets, as well the perception that the use and holding of cryptoassets is safe and secure, and the regulatory restrictions on their use; (v) general expectations with respect to the rate of inflation, interest rates and exchange rates; (vi) changes in the software, software requirements or hardware requirements underlying the TTT NFT; (vii) changes in the rights, obligations, incentives, or rewards for the various holders of the TTT NFT; (viii) interruptions in service from or failures of major cryptoasset exchanges on which cryptoassets are traded; (ix) investment and trading activities of large purchasers, including private and registered funds, that may directly or indirectly invest in cryptoassets; (x) monetary policies of governments, as well as any trade restrictions, currency devaluations and revaluations; (xi) regulatory measures, if any, that affect the use of cryptoassets and changes in Applicable Law; (xii) global or regional political, economic or financial events and situations; and (xiii) expectations among participants in cryptoassets that the value of cryptoassets will soon change. A decrease in the price of a single cryptoasset may cause volatility in the entire cryptoasset industry and may affect other cryptoassets including the TTT NFT. For example, a security breach that affects participants’ confidence in bitcoin or ether may affect the industry as a whole and may also cause the price of the TTT NFT to fluctuate. Such volatility in the price of the TTT NFT may result in significant loss over a short period of time.
Volatility risk. The asset allocation process is based on a careful statistical evaluation of past price performance. However, past performance is no guarantee of future results and the volatilities of individual securities may be markedly higher or lower than in the past.
Volatility risk. 2.1 Prices of derivative warrants can increase or decrease in line with the implied volatility of underlying asset price. Investors should be aware of the underlying asset volatility SOME ADDITIONAL RISKS INVOLVED IN TRADING CBBCS
