Important note: Please inform yourself extensively about functioning and risks before you acquire any financial derivatives, and review your investment decision carefully as to whether or not a selected financial derivative is in accordance with your personal risk tendency, and is therefore suitable for your investment targets. Please note that trading in financial derivatives on usual market conditions is subject to rate changes and risk of loss, and therefore can result in a total loss of your investment. Past development of values is not a reliable indicator for future developments. Please also take into account costs associated with acquisition and disposal of financial derivatives (e.g. order fees, trading place fees etc.). The above presentation is merely meant as general information, but must not be considered as personal recommendation. Financial derivatives are merely arranged and placed by us (no advice). Any information presented in this website are solely addressed to individuals, and cannot be considered as counselling or advice for investment, or offer for purchase or sale of financial derivatives or other financial instruments. They solely serve information purposes. By using this website, you do not close a consultation or information agreement with us as online brokers and financial portal. Any information, data and presentations included in this website are protected as regards trademarks and/or copyrights in favour of German Investors 500 GmbH or its suppliers. For securities-related information, German Investors 500 GmbH cooperates with other suppliers. Risk note: CFDs, Forex, futures, options, binary options and spread betting are financial products with leverage effect. Trading in these products incorporates a high risk which cannot be suitable and appropriate for any investor. Please ensure that you fully understand all risks associated with these products, and obtain professional advice, if necessary. Trading in these financial products may not only result in a total loss of your capital used, but may lead to further loss in excess of it. This means of advertising does not constitute individual investment counselling. Rates and standing data: All informationen on rates as well as data service are provided by German Investors 500 GmbH Source: German Investors 500 GmbH Data Service Source for standing data of derivatives: German Investors 500 GmbH We do not accept liability as regards correctness of data. Commercial use of data is prohibited. We do not accept liability for the correctness of presented rate data, standing data and market data. Legal note: standard terms and conditions, data protection notes, imprint, contact details Securing of capital contributions: All customer accounts and depots traded via our platform TWS4 are kept and maintained by Interactive Brokers LLC, located in the U.S.A. All securities accounts of our customers are protected up to an amount of 30 million US$ (including up to 1 million US$ for cash deposits). The market value of shares, options, warrant issues, bond issues and cash deposits in any currency is protected by this insurance. Securities customer accounts are protected at Interactive Brokers LLC through 'SIPC' (Securities Investor Protection Corporation) with a maximum cover of US$ 500,000 (including US$ 250,000 for cash deposits). Under the Interactive Brokers LLC's Excess SIPC Policy customers are additionally insured by the insurance company Lloyd's of London with an additional amount of US$ 30 million (including US$ 900,000 for cash deposits). This maximum amount is part of an overall insurance cover of US$ 150 million. Futures and options relating to futures are not covered. Like is the case with any securities companies, this insurance does only refer to failure of the broker dealer. Losses due to trade or decrease in value relating to securities are not covered. For the purpose of determining of a customer account, accounts in the same name and of the same type (e.g. individual account Anton and Mia Schulz, and individual account Anton und Mia Schulz) are combined. Accounts of different types (e.g. individual account Mike Muster and IRA account Mike Muster) will not be combined. Securing of capital contributions of private customers: All customers are automatically categorized as retail customers/private customers, and the customer is notified of it in the first confirmation of opening of accounts sent to him. For regulated financial service providers exist strict rules for protection of capital contribution of private customers. Customer’s funds of private customers are secured as follows: Separately kept capital contributions: In accordance with the rules applicable to customer’s funds it reads: „A company has to warrant that any deposited customer’s funds are kept in a central bank separately from other accounts“. Your capital will be deposited in separate bank accounts, maintained by Barclays Bank. This process is regularly monitored by chartered accountants/auditors. Liability roof note: Kaiser Global Invest GmbH (BaFin Nr. 80160395) works in the field of investment placement as a bound agent in the meaning of § 2 (10) sentence 1 of the KWG [= German Act on Banking and Credit Business] solely on behalf of and subject to liability of Innovative Investment Solutions GmbH, Georg-Schumann-Str. 174, 04159 Leipzig, Deutschland. Inno-Invest is a free and independent financial service provider and possesses any licences and permits required by the German Federal Office for Financial Service Providers (BaFin). © 2017 Kaiser Global Invest GmbH
Service numbers 1. Serviceline +49 (040) 88215 5612 (Local Calls) Monday - Friday 09am - 08pm 2. Serviceline +49 (040) 88215 5611 (Local Calls) Monday - Friday 09am - 08pm If you have further questions, please contact our Support Team
Securing your depot account by options is a good idea. Basically, you have to ask yourself two questions: 1. What is an option? And 2. What exactly is my mode of action? Question 1. What is an option? A   warrant   issue   is   a   form   of   a   right   which   can   be   traded   in   stock   exchanges.   The   origin   of   the   word   option   is   Latin   (optio),   and   it   means   choice   or   wish.   By   buying   an   option right,   an   investor   acquires   the   right   to   demand   a   performance   within   a   certain   period   of   time.   In   ancient   times,   this   could   be   delivery   of   spices   or   china;   in   agriculture   it   could   be a part of a harvest, and in finance it is about the theoretical delivery of shares, raw material or currencies. However,   there   is   an   important   difference   compared   to   contract   of   futures.   A   warrant   issue   owner   has   the   right   to   exercise   his   right,   e.g.   his   option   –   purchase   or   sale.   In contrast   to   owners   of   futures   however,   he   is   under   no   obligation   to   do   so.   While   contracts   of   futures   are   accounted   at   the   end   of   term   in   any   case,   the   owner   of   a   warrant   issue has the choice to have his right expired. In   case   of   purchase   warrant   issues   (call),   an   investor   acquires   the   right   to   call   a   certain   number   of   shares,   bond   issues,   indices   or   foreign   currencies   –   which   are   called   basic values or underlying – from a contractual partner. By   buying   a   sale   warrant   issue   (put),   an   investor   acquires   at   the   same   time   the   right   to   deliver   a   certain   number   of   a   basic   value   to   his   contractual   partner.   This   is   called   to   put. This   contractual   partner,   i.e.   the   seller   of   an   option,   is   called   an   option   writer   because   he   agreed   to   deliver   or   buy   a   certain   number   of   basic   values   at   a   fixed   price   within   an agreed   period   of   time   (American   warrant   issue)   or   at   a   fixed   date   (European   warrant   issue).   As   compensation,   the   option   writer   receives   a   premium   from   the   buyer   of   a   warrant issue. An option writer is under an obligation, the buyer of an option is not. For   the   buyer   of   a   right,   the   risk   of   loss   is   limited   to   the   initial   stake   capital,   because   he   has   a   choice   whether   or   not   to   exercise   his   option   right,   i.e.   calling   of   basic   values   or putting   of   basic   values   towards   an   option   writer,   or   to   have   it   expired.   This   is   a   difference   between   a   warrant   issue   and   futures.   The   latter   is   a   contract   between   two   parties. With futures, additional amounts may be necessary to be paid in excess of the contractual amount. Question 2. What exactly is my mode of action? Even   if   rates   should   fall,   warrant   issues   are   good   for   generating   profit,   or   for   securing   your   depot.   A   major   reason   for   buying   warrant   issues   is   surely   speculation.   As   also younger investors may have noted, stock exchange is not a one-way-street upwards. But   warrants   do   not   only   offer   the   opportunity   to   speculate   for   increasing   share   rates.   With   sale   warrant   issues   it   is   also   possible   to   catch   up   decreasing   share   rates   and   to secure   a   depot   against   loss.   A   put   can   work   like   insurance:   if   a   share   rate   drops,   the   sale   warrant   issue   increases.   In   an   ideal   case,   both   trends   cancel   each   other   out.   Despite falling share rates, an investor does not lose money. Beside static securing, there is also a dynamic securing which is called Delta Hedging. Static Securing The   number   of   warrant   issues   required   for   depot   securing   is   being   calculated   in   the   beginning,   and   will   not   be   changed   during   the   term.   Securing   is   established   in   the   beginning in a ratio 1:1. The number of warrants required depends on the option ratio and depot value: Number of puts = quantity basic vale * option ratio However, this form of securing does not allow for complete buffering of loss during the term. It merely guarantees securing until the end of a puts. Dynamic Securing Should   securing   be   guaranteed   during   the   entire   term,   dynamic   securing   is   recommended   (Delta   Hedging).   The   parameter   Delta   must   be   known   for   this   variant.   Objective   is   to make put option and the position to be secured exactly congruent. The number of warrant issues required can be calculated as follows: Number of puts = quantity basic values * option ratio * (-1/options Delta). So   called   Delta   Hedging   is   a   very   complicated   procedure.   Since   Delta   of   put   warrant   issues   is   constantly   changing   during   the   term,   a   permanent   adjusting   of   securing   to changing market conditions is required. Advantages of option trade through our broker network stable and reliable trading platform more than 60 order types and order additions trade in Eurex options for 3.55 EUR trade in US options starting from 3.55 US$ depot keeping free of charge intensive platform training many more advantages for you as a customer through our broker network
Hedging with options
The ultimate hedging platform "Trader Workstation 4" (TWS4)
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