Short & Leveraged ETPs
Short & Leveraged ETPs enable you to multiply the daily performance of an index, commodity or currency pair, without ever risking more than you invested.
Short and Leveraged ETPs are Exchange Traded Notes that track the performance of a leveraged index. They are designed for frequent traders who are prepared to take more risk in pursuit of higher returns.
A key feature of a Short & Leveraged ETP is that they will multiply the daily rise or fall of an underlying index, commodity or currency pair by 2, 3 or 5 times. This means that every £1 invested provides the same profit or loss as £2, £3 or £5 invested directly in the underlying asset for a day.
If your investment results in a loss, your losses will be 2, 3 or 5 times greater than investing directly in the underlying asset. A re-assuring feature of Short & Leveraged ETPs is that you can never lose more than you invested.
CHOOSING A SHORT & LEVERAGED ETP
There are two main types to choose from; Daily Longs if you expect markets to rise, and Daily Shorts if you expect a fall. You can also select a product according to its leverage. Higher leverage means more risk.
FIND OUT MORE ABOUT SHORT & LEVERAGED ETPs
Before trading for the first time (and periodically after) you should read the Product Guide and study the Final Terms. If you do not fully understand the product you should seek advice from a financial adviser prior to trading.
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TRADING SHORT & LEVERAGED ETPS
Having read and understood the product guide, you can buy or sell a Short & Leveraged ETP at any time during the trading day as live prices are provided on the London Stock Exchange. You cannot trade directly with Societe Generale. You can trade Short & Leveraged ETPs with a UK stockbroker in a dealing account, SIPP or ISA.
Short & Leveraged ETPs are complex products. As such, your stockbroker will require you to complete a Complex Products Assessment prior to trading for the first time.
Short & Leveraged ETPs aim to mitigate Counterparty Risk through the use of Collateral, which is posted by Societe Generale and held with The Bank of New York Mellon (Luxembourg) S.A.as the independent custodian. The Collateral is monitored daily at market close to maintain 100% of the market value of the Short and Leverage ETP. In the event that Societe Generale in their role of Guarantor should default or become insolvent, the Short and Leveraged ETP would terminate early and the Collateral assets would be sold to recover some or all of your investment. An intraday fall in the value of the Collateral could mean the product is not 100% protected.
Short & Leverage ETPs are suitable for sophisticated retail clients in the UK, who have a good understanding of the underlying market and characteristics of the security. In particular, it is important that, before you make any investment, you understand that you could lose all of your investment when investing in these products, even if they are held until the end of their term.
You should read the Product Guide and Final Terms for your chosen product before making any investment. You should read the Final Terms carefully and keep it safe for future reference
THIS COMMUNICATION IS FOR SOPHISTICATED RETAIL CLIENTS IN THE UK
This website is issued in the U.K. by the London Branch of Societe Generale. Societe Generale is a French credit institution (bank) that is supervised by the European Central Bank (‘ECB’) and the Autorité de Contrôle Prudentiel et de Résolution (the French Prudential Control and Resolution Authority) (‘ACPR’) . This document is issued in the U.K. by the London Branch of Societe Generale, authorised by the ECB, the ACPR and Prudential Regulation Authority and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available from us on request.