SHF

[boing]

Why does SHFSTA have a gearing of 5? Should SI's not have gearing of around 2?

[john_1]

Dude! the gearing on an installment is dirrectly related to the capital empoyed / by the share price.. ie you are only needing 20% capital as the price of the underlying has fallen significantly sinse it was issued.

[SimonPB]

the 5th letter being a T makes it a turbo, so gearing is a bit higher (around 2.4x at issue). But if the share price is falling enough this will increase the gearing.

[boing]

Thanx. What is the difference between an si and eds?

[SimonPB]

eds have a barrier that if touched sees the eds expire.

[john_1]

but you get back the intrinsic value. don't let it hit the barrier EVER.

[SimonPB]

john, yes but you loose the interest AND they give yo the value for the 2 days AFTER the barrier is hit.

[john_1]

Simon absolutly, my point being it is not like a wave warrent that you lose everthing. Like I said NEVER let it hit the barrier.