[Classroom] Fundamentals of Leveraged and Inverse Products
SFC published a Supplemental Circular on Leveraged and Inverse Products on 14 March 2019.
Leveraged & Inverse Products (L&I Products) have become increasingly popular in overseas markets, particularly in Asia, and demand for these products has increased in Hong Kong. Their shares / units are traded on The Stock Exchange of Hong Kong Limited (SEHK). They are different from conventional exchange traded funds (ETF). Leveraged Products typically aim to deliver a daily return equivalent to a multiple of the underlying index return that they track. On the other hand, Inverse Products typically aim to deliver the opposite of the daily return of the underlying index that they track.
This course aims to provide learners an overview of L&R products.
By the end of the training, the participants will
1. Gain knowledge in the key features and characteristics of the leveraged and inverse products;
2. Be able to tell the risks and benefits of the leveraged and inverse products;
3. Be reminded of the key product characteristics and features from practical examples.
1. Key concepts and features of the leveraged inverse products
2. Key risks and benefits, and product suitability
3. Scenario analysis
4. Overview and comparison of other listed derivative products
This course is primarily targeted to those who would like to gain the basic understanding of the Hong Kong listed equity options.