Underlying: Sulzer SSPA/EUSIPA Product Type: Mini-Futures (2210) Valor: 33020066 / ISIN: CH0330200665
|Spread||0.03 CHF / 5.55%|
|Trading place||Swiss DOTS|
Tax information Switzerland
|Swiss income tax||No|
|Stop loss touch date||Not touched|
Stop loss information
|Stop loss||87.003531 CHF|
|Financing level||84.469448 CHF|
|Last update||20.01.2017 03:45:06|
|Underlying price1)||109.90 CHF|
|Distance to stop loss1)||22.896469 CHF (20.83%)|
|Stop loss touched||No|
The performance of a UBS mini future is relatively easy to understand, since it moves more or less in step with the underlying asset. With a UBS Mini Futures Long, investors who are willing to take risks can speculate on rising prices, and with a mini futures short, on falling prices of the underlying asset (e.g. equities, indices, currency pairs, interest rates, commodities). Since investors have to finance only a small portion of the underlying asset themselves, a leverage effect is created. As issuer, UBS pays the rest, i.e. the financial level. If the underlying asset of a long mini future appreciates significantly, for example, investors will earn above-average profits. The higher the financing level, the greater the leverage.
But borrowing money also costs interest. The issuer charges the investor for the financing costs by adjusting the financing level on a daily basis. The name "mini futures" reminds us that these instruments operate much like standard futures contracts, i.e. futures, but unlike these their maturities are not limited. Another important difference compared to conventional futures is that investors never have to furnish additional funds for UBS mini futures, as the instruments have an automatic loss limitation function called the stop loss level. If the underlying asset moves in an undesired direction and reaches the stop loss level, the mini future expires with immediate effect. In this case, the issuer calculates the remaining value and disburses it to the investor – provided it is not zero. The stop loss level for long mini futures is set slightly above the financing level and in the case of short mini futures slightly below. The stop loss level therefore limits the risk and prevents an obligation to pay further capital. If the stop loss level of the underlying price is reached or exceeded, a considerable loss of the invested capital can be expected (total loss is possible).
In addition, investors must take into consideration the issuer risk, since loss of the invested capital could occur if UBS AG becomes insolvent, regardless of the performance of the underlying asset and other market parameters.
You can find a more detailed product description in our brochure "Knowledge in a nutshell".