Leverage Risk definition

Leverage Risk. The ETP Securities provide leveraged exposure to the performance of the Reference Assets and as a result will be much more volatile than unleveraged investment in such Reference Assets. Relatively small changes in the value of the relevant Reference Assets may cause investors to lose some, or all, of their investment in an accelerated timescale.
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Leverage Risk. We offer you the ability to trade in financial instruments with a value greater than the collateral you commit to a trade. While a high degree of leverage has the potential for larger profits, it also carries a high risk of losing the money you invest. In the event that the market moves against you, you may suffer a loss in excess of the money you deposit in your Trading Account and in excess of the Margin required to support your Open Positions.
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Leverage Risk. The ETP Securities provide leveraged exposure to the performance of the Reference Assets and as a result will be much more volatile than unleveraged investment in such Reference Assets. Relatively small changes in the value of the relevant Reference Assets may cause investors to lose some, or all, of their investment in an accelerated timescale. 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. In addition, leverage may magnify the effect price rises in the relevant Reference Asset have on the value of the ETP Securities. ETP Securities linked to an Investment Strategy: Each ETP Security will be linked to the performance of the Reference Assets referenced by such Investment Strategy. Investors have no ownership rights in any Reference Assets of an Investment Strategy. The amount payable on redemption of the ETP Securities will depend on the liquidation of the Collateral Assets in relation to that Series. Actively managed investment strategy: ETP Securityholders have no right to participate in the management of the Collateral Assets of a Series of ETP Securities. All decisions with respect to the investment of the proceeds of issuance of the ETP Securities will be made in accordance with the Kronos Investment Strategy. No person should purchase any ETP Securities unless they are willing to entrust all aspects of management of the Collateral Assets to the Portfolio Administrator to invest in accordance with the Kronos Investment Strategy. Poor performance of the Kronos Investment Strategy may negatively impact the value of the ETP Securities which may result in the ETP Securityholders receiving less, or substantially less than their initial investment.
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Examples of Leverage Risk in a sentence

  • Leverage Risk: The Fund Assets, Reference Index or Reference Asset and the derivative techniques used to link the two may comprise elements of leverage (or borrowings) which may potentially magnify losses and may result in losses greater than the amount borrowed or invested.

  • Please carefully review the Leverage Risk Disclosure, Risk Disclosure Statement and Futures Risk Disclosure.

  • Utilizing a margin facility may present additional risks which are summarized in section 7.k. Leverage Risk Disclosure.

  • The following brochure links are also provided: “A Guide for Investors” and “How IIROC Protects Investors”; Suitability Waiver Acknowledgment, Leverage Risk Disclosure, Risk Disclosure Statement, Disclosure of Non-Resident Status, Conflicts of Interest Policy, Futures Risk Disclosure, Direct Market Access Supplemental Terms; and the ▇▇▇▇▇.▇▇▇ Canada’s Customer Agreement.

  • For Belfius Bank, the MREL requirement on a consolidated basis is set at 22.87% of Total Risk Exposure Amounts (TREA) and 6.84% of Leverage Risk Exposures (LRE).

  • The following brochure links are also provided: “A Guide for Investors” and “How ▇▇▇▇ / IIROC Protects Investors”; Suitability Waiver Acknowledgment, Leverage Risk Disclosure, Risk Disclosure Statement, Disclosure of Non-Resident Status, Conflicts of Interest Policy, Futures Risk Disclosure, Direct Market Access Supplemental Terms; and the ▇▇▇▇▇.▇▇▇ Canada’s Customer Agreement.

  • Leverage Risk – Some transactions may give rise to a form of economic leverage.

  • Leverage Risk Disclosure: Using borrowed money to finance Foreign Exchange Trading involves greater risk than using cash resources only.

  • Utilizing a margin facility may present additional risks which are summarized in section 8.l. Leverage Risk Disclosure.

  • In addition to the risks described above, debt securities, including high yield securities, are subject to certain risks, including: Leverage Risk.


More Definitions of Leverage Risk

Leverage Risk. To the extent the fund uses leveraging techniques, its net asset value, or NAV, may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the fund’s investments. • Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the fund. Derivatives, especially over- the-counter derivatives, are also subject to counterparty risk.
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