Far leg and Structured deposit: Difference between pages

Revision as of 17:08, 24 August 2016

A retail investment product which offers:

Guaranteed return of the principal invested; and
Limited upside participation in a higher risk investment, often an equity index, for example the FTSE 100.

The provider hedges its risk by using part of in the investment proceeds to buy call options on the index (or other higher risk investment).

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-. ''FX swaps''.
+A retail investment product which offers:
+*Guaranteed return of the principal invested; and
+*Limited upside participation in a higher risk investment, often an equity index, for example the FTSE 100.
-In an FX swap contract, the later re-exchange of the two currencies in the contract.
-This follows the initial exchange of the same currencies and related amounts in the opposite direction, in the 'near leg'.
-. ''Repurchase agreements''.
-In a securities repurchase agreement ('repo'), the second exchange (re-exchange) of securities, previously exchanged in the 'opening leg' or 'near leg'.
+The provider hedges its risk by using part of in the investment proceeds to buy call options on the index (or other higher risk investment).
 == See also ==
-* [[Closing leg]]
+* [[Call option]]
-* [[FX swap]]
+* [[Deposit]]
-* [[Near leg]]
+* [[Equity]]
-* [[Opening leg]]
+* [[FTSE 100]]
-* [[Repurchase agreement]]
+* [[Index]]
-* [[Swap points]]
+* [[Principal]]
+* [[Retail]]
-[[Category:Manage_risks]]
+* [[Tracker fund]]
-[[Category:Cash_management]]