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 Clie...
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. This is the risk linked to the movements of specific prices of a security. Volatility is high if the security is subject to wide movements over a relative time period (ie daily for some types of instrument and longer for others). The risk of volatility is calculated on the basis of the average difference between the lowest prices and the highest prices of a financial instrument over a given period.
Volatility risk. 6.4.1.2.1 Prices of L&I Products may be more volatile than conventional exchange traded funds (ETFs) because of suing leverage and the rebalancing activities.
Volatility risk. The performance of BIF Units may be highly volatile (both in absolute terms and relative to realized returns), potentially resulting in increased risks, including the risk of substantial losses. BIF Units may, by design or otherwise, have high volatility, negative skewness (or “left tail” risk), negative kurtosis (or “flat” distribution risk), high correlation with certain macroeconomic risk factors, high position concentrations, and/or other significant risks, whether in absolute terms, relative to any expected and/ or realized returns of the BIF Units. The value of a BIF Unit may vary significantly over time, and the risk of substantial losses to an Investor may be great. A prospective Investor should purchase BIF Units only if it has determined that such variance of returns is consistent with its financial objectives and risk tolerances. The risks outlined in this section may be intentional and/or may result, in part, from the election by the Company not to take risk-reducing actions that it might deploy elsewhere, including where it deploys similar strategies on behalf of Investors. BEC Ltd. is committed to supporting the development and commercialization of truly revolutionary clean energy technologies. The BEC Ltd. Inaugural Fund (“BIF”) is investing in companies that are developing truly breakthrough clean thermal and thermo-electric energy technologies. The beneficiary companies develop technologies that together make possible clean energy generation systems that will serve as low-cost (both capital and operating), safe, reliable, and zero-carbon sources of energy capable of replacing most existing solutions. BEC Ltd. continues to seek out companies with reliable clean heat generation, electrical generation, and heat to energy conversion technology solutions. The current target companies of the inaugural fund are described in the following section.
Volatility risk. The market for cryptocurrencies can be extremely volatile. The prices of cryptocurrencies may be influenced by, among other things, the performance of the economy as a whole; new or amended government regulation; the changing supply and demand relationships for cryptocurrency, governmental, commercial and trade programs and policies; interest rates; technological developments; inflation; national and international political and economic events; statements by public figures; and social media sentiment.
