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Trading derivatives: sprinters, speeders and turbosAbout tradingderivatives.euThis site is intended for ambitious traders willing to accept large risks using leverage investment products. Tradingderivatives.eu does not apply fundamental analysis, but technical analysis instead. In short, tradingderivatives.eu follows and detects market trends. The reasons for these trends are given by the economic situations in the world's regions, but the timing of our trades are given by technical analysis only. We believe that fundamental analysis can not explain all fluctuations in the stock markets. We detect the slowest trends and follow them. We make money in both bearish and bullish markets. We show exactly what we do so you can copy us. However, we are not a bank. TradingDerivatives.eu is not accountable for your losses and profits. You remain in charge of your investments. We have a policy of full transparancy for our current positions but also on our track record. Our tweetsWe tweet on a regular basis about our portfolio suggestions. Also, we select the tweets of the trading community based on keywords and we retweet the most relevant ones. Hence our tweets are limited what we think is most useful to you. Tweets by @TrdngDrivatives What are speeders, sprinters and turbos?
The differences between sprinters, speeders and turbos are marginal. Sprinters are supported by ING, speeders by the German Commerzbank and turbos by the Royal Bank
of Scotland (RBS). Basically, all three are financial derivatives that enable you to borrow money for the acquiring of securities. Investing with borrowed money
enables you to make much higher profits. Downside is that your losses can also be huge. Because your investments are increased with the leverage factor high profits
can be achieved. Leverage works both ways so your losses can also be considerable. Therefore, these leverage products are intended for experienced investors willing
to take high risks. The relation with exchange traded funds (ETF)
Do speeders, sprinters and turbos compare to exchange traded funds? Yes and no. An exchange traded fund (ETF) is often a combination of stocks in the same ratios as a
stock index. ETFs like these track a stock index. Since a stock index contains many stocks in itself, your stock portfolio is well spread over many branches of
industries - while you have the advantage of few kinds of effects in your portfolio. This gives you easy risk management. Another advantage of ETFs is that is value
is coupled to the index in a fixed ratio. As a result, companies behind ETFs have to buy and sell their ETFs constantly. Every few seconds they change their bid and
sell prices with massive volumes behind it. This means that the market is made for you. You always have an opportunity to buy or sell the ETF of your choice. This
also holds for sprinters, speeders and turbos; companies behind these leverage products also 'make the market'. If you invest in a leverage product in an index, your
portfolio is just as well-balanced as if you would buy an ETF in that index. The formulas
Sprinters are maintained by ING, a large Dutch bank. ING benefits from the sprinters they offer in several ways. You pay interest on your loan. Therefore, your
investment is only successful if the underlying security was more profitable than your loan. Any invested dollar, borrowed or yours, should bring you profit and this
is achieved only if, in this case, the DAX index goes up so fast that it compensates the interest on the sprinter. Other ways ING profits from sprinters because of
the difference between the sell and buy prices, the spread. This is the price difference at a given moment between the ask and bid prices of a sprinter. ING, RBS and
other suppliers of leverage products like sprinters sometimes increase the spread to reduce their risks and maximise their profits.
What makes TradingDerivatives.eu different from others?
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Disclaimer abstract: This site shows how we are investing. We do not accept any responsibility for your losses. Standard rules of stock
market trading apply: investments should be spread over multiple funds and brokers.
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