The ABN AMRO Turbo.
The ABN AMRO Bank N.V. (“ABN AMRO”) Turbo certificate (“Turbo”) is a derivative investment product that tracks an underlying in a linear manner. However, the amount needed to invest in a Turbo certificate to give the same participation rate in the underlying as a direct investment in the underlying is considerably less. This is because part of the investment is being financed by the Issuer. The resulting leverage effect causes a higher percentage gain or loss in Turbos than in a direct investment in the underlying.
Investing in Turbos.
Investing in Turbos provides an opportunity to speculate on either price increases or price decreases of an underlying. Turbos Long enable the investor to profit from rising markets by tracking the underlying. Turbos Short enable the investor to profit from declining markets by tracking the underlying in an inverse manner. Apart from being used for speculative purposes, Turbos can also serve as a hedge instrument for existing portfolios. In addition, Turbos give investors access to a wide range of asset classes that may, under normal circumstances, not be directly available to private investors, such as certain commodities.
Available asset classes.
ABN AMRO Turbos give investors the opportunity to invest in numerous underlyings across various asset classes, including single stocks, indices, commodities, currencies and bonds. A complete overview of available asset classes can be found on www.abnamromarkets.com/turbo.