Factor warrants: The trend is you friend
The leveraged securities show their strengths in clear market movements. How you can profit disproportionately.
Three reasons for factor warrants
- Due to the constant leverage effect, the performance is easily comprehensible.
- Disproportionate profits are possible in rising and falling markets.
- We assure trading quality.
Tops & Flops
It depends on the factor
Factor warrants are securities with a leverage effect. With factor long warrants, you bet on a rising price and with factor short warrants on a falling price of a specific underlying asset. The principle is simple: the factor reveals how strong the leverage is.
Let's assume that you believe that a stock is marching upwards and decide on a long warrant with a factor of 5. If the price of the underlying stock rises by one percent on one day, the factor warrant increases by five percent. If the share price falls by one percent, the long warrant loses five percent in value. Factor warrants are a comparatively new product category that has established itself in recent years.
Trading quality assured
These products are particularly suitable for short-term trend phases. The special thing about them is that the leverage effect remains constant: The respective closing price of the reference value serves as the basis for the leverage effect of the following day.
You can trade factor warrants every trading day from 8 a.m. to 10 p.m. - and thus also react to developments in the USA, for example. Our trading experts ensure the quality of the buying and selling prices. This is particularly important for short-term investments, as a better price can significantly improve the performance of your investment.
If you are one of the more risk-friendly investors, you can use our Finder to find out which factor warrants are available for your favourite underlying.