25.11.2024 Notice of Consolidation

Аватар на автора

Author

Pawel Uchman

Date

Trading ETPs in multiple currencies

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

Leverage Shares entrusts the pricing and quoting of its ETPs on European Exchanges to specialized third-party market makers, some of which we hire, like BNP Paribas and Virtu Financial, and others simply arbitragers and liquidity providers. When an ETP, such as 3TSL, is based on a US asset but presented on a European exchange in GBP, it’s crucial to understand how its intrinsic value is translated from its original USD form.

Here’s where the expertise of these market makers becomes paramount. They have privileged access to interbank foreign exchange (FX) rates, which are the ultracompetitive rates at which the world’s largest banks exchange money. Leveraging these rates, the market makers can efficiently price and quote the ETPs in multiple currencies, ensuring accuracy and minimal cost for investors trading on exchange.

This becomes particularly important when you contrast it with the common FX experience of individual investors. If an investor, for instance, with a GBP local currency account, decides to trade the USD variant of an ETP through their broker, they might face significant added fees. Some brokers can charge a hefty FX fee of as much as 1.5% on top of the trade value (up to 100x more expensive than interbank rates)! With the market makers’ utilization of the interbank FX rates, such exorbitant charges can be bypassed when trading Leverage Shares ETPs in the investors’ local currency. (Please reach out to your broker for more details about their fee structure).

Lastly, arbitrageurs monitor the market to ensure that there’s a tight alignment between the ETP’s quoted price and its intrinsic value based on the underlying asset and interbank FX rate. In essence, by collaborating with, and taking full advantage of Europe’s large network of market makers, arbitrageurs, and liquidity providers, Leverage Shares ensures that investors access competitive, fair, and transparent prices with minimal added costs.

Websim is the retail division of Intermonte, the primary intermediary of the Italian stock exchange for institutional investors. Leverage Shares often features in its speculative analysis based on macros/fundamentals. However, the information is published in Italian. To provide better information for our non-Italian investors, we bring to you a quick translation of the analysis they present to Italian retail investors. To ensure rapid delivery, text in the charts will not be translated. The views expressed here are of Websim. Leverage Shares in no way endorses these views. If you are unsure about the suitability of an investment, please seek financial advice. View the original at

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

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This website is accessible to retail investors in the EU for informational purposes only. Leverage Shares does not directly distribute to retail investors. Retail clients should not rely on any of the information provided and should seek independent financial advice.

Information contained in this website is intended only to provide general and preliminary information and does not constitute any legal or investment advice, an offer to sell or solicitation to buy any security, including shares of any Exchange Traded Products (“ETPs”).

An investment in the promoted ETPs may only be made based on the ETPs´ legal documentation and will be subject to terms and conditions contained therein.

The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions. The ETPs shown on this website are not available for sale in the U.S. or to a U.S. person.

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This website is for informational purposes only.

Information contained in this website is intended only to provide general and preliminary information to EU regulated firms such as Investment Intermediaries and Asset Managers. This information does not constitute an offer to sell or solicitation to buy any security, including shares of any Exchange Traded Products (“ETPs”).

An investment in the promoted ETPs may only be made based on the ETPs´ legal documentation and will be subject to terms and conditions contained therein.

The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions. The ETPs shown on this website are not available for sale in the U.S. or to a U.S. person.

I acknowledge having my legal residence in the selected location.

Please confirm the Terms and Conditions by clicking on “I agree”

This website is for informational purposes only.

This website is accessible to retail investors in the UK for informational purposes only. Leverage Shares does not directly distribute to retail investors. Retail clients should not rely on any of the information provided and should seek assistance from an IFA for all investment guidance and advice.

Information contained in this website is intended only to provide general and preliminary information and does not constitute any legal or investment advice, an offer to sell or solicitation to buy any security, including shares of any Exchange Traded Products (“ETPs”).

An investment in the promoted ETPs may only be made based on the ETPs´ legal documentation and will be subject to terms and conditions contained therein.

The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions. The ETPs shown on this website are not available for sale in the U.S. or to a U.S. person.

I acknowledge having my legal residence in the selected location.

Please confirm the Terms and Conditions by clicking on “I agree”

This website is for informational purposes only.

Information contained in this website is intended only to provide general and preliminary information to FCA regulated firms such as Independent Financial Advisors (IFAs) and Wealth Managers. This information does not constitute an offer to sell or solicitation to buy any security, including shares of any Exchange Traded Products (“ETPs”).

An investment in the promoted ETPs may only be made based on the ETPs´ legal documentation and will be subject to terms and conditions contained therein.

The information provided on this site is not directed to any United States person or any person in the United States, any state thereof, or any of its territories or possessions. The ETPs shown on this website are not available for sale in the U.S. or to a U.S. person.

I acknowledge having my legal residence in the selected location.

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