What exactly are turbos and how can you best invest in a turbo or turbo XL? How can you invest in turbos and benefit from the leverage of a turbo 24 hours a day? Investing in turbos online is easy. In a turbulent stock market, a turbo is perfect to protect your package of shares against a crash, but also to make a lot of money with leverage from a price rise or fall. This way you use these turbos to make an immediate profit and benefit from the leverage of a turbo. Limit your risk when you invest…
The leverage effect of the turbo investment
- Profit from investing in raw materials, double profit with a turbo
- Protect your profits on the stock market with turbos
- What are turbos?
- Invest with a turbo in the AEX index, short or long
- Substantial profits and enormous returns with turbos are possible due to the leverage and the level of financing
- Stop loss with a turbo
- But, again protect your profits
- Turbo xl
- ING Sprinter
- Key lock
Frequently Asked Questions
Do I also have to buy shares when I buy turbos?
Shares and turbos are two different investments. If you buy turbos, you do not have to buy shares, but the combination of shares and turbos makes it possible to protect your share package when prices fall on the stock exchange.
How can I make a lot of money with turbos?
If you want to make a lot of money with turbos, you can opt for turbos with high leverage. The leverage makes it possible for you to earn multiples compared to investing in shares. But beware, there is no need to take a lot of risks with turbos. If you want to take less risk, choose a lower leverage.
Is it really possible to make money when stock prices are falling?
Yes, you can make money even when stock prices fall, provided you have the right turbos. A turbo short increases in value when the stock market falls in value. The trick is to choose short or long turbos at the right time.
Profit from investing in raw materials, double profit with a turbo
Precious metals such as gold and silver attract enormous attention. These are raw materials that have risen sharply in price and are expected to rise further due to the scarcity on the market and an increasing demand for these raw materials. But those who want to invest in commodities have more options. Consider investing in water, grain, oil and gas. As always with investing, it is best to spread your investments. A good and simple way to immediately benefit from the rising prices of raw materials is the turbo. But you can also use these turbos to protect your entire share portfolio against price falls.
Protect your profits on the stock market with turbos
As an investor, you must constantly think about how to protect your paper earnings against major stock market declines. One day the stock market will correct and fall, a regularly recurring process. The profit on your share package may be partially or completely lost. In fact, if there is a decline, you can even make a significant loss. If you take the right measures, you can avoid price falls and partly protect your profits with this exit strategy. Trade in turbos.
What are turbos?
Just like an option, a turbo is an investment instrument, a derivative. A derivative product, similar to options and warrants, but still different. You can choose from all kinds of underlying values: shares, currencies, commodities, indices or bonds. There are so many opportunities to make money with currency changes. Both when prices rise and when they fall. With the prospect of a rising price, you invest in a turbo long and otherwise in a turbo short. The turbos are freely tradable on Euronext and offer many options. The turbo was developed by ABN AMRO and is offered by various banks, including Saxo Bank, BNP Paribas and Lynx.
Invest with a turbo in the AEX index, short or long
If you think the AEX will rise, buy a turbo-long on the AEX. In the other case a turbo short. If your vision is correct, you will earn a lot. Otherwise you will lose, but the stop-loss will almost always leave some residual value. Now more about possible big profits and the stop-loss.
Substantial profits and enormous returns with turbos are possible due to the leverage and the level of financing
It is essential that your vision is correct. That raw materials will indeed rise or that the stock market will indeed rise. If that vision is correct, the turbo will increase significantly in value due to the built-in leverage. The leverage arises because part of the price of a turbo is financed by the bank, the financing level. The average leverage is about ten. This means that if the price of a share changes by 1%, up or down, the turbo in question will change by as much as 10%. And indeed, that can also go down. But not unlimited because there is a built-in stop-loss.
Stop loss with a turbo
In a turbo long you can trade as long as the underlying asset remains above the stop loss value, with a turbo short as long as the price of the turbo remains below the stop loss value. If you take into account a rise and the underlying asset falls sharply, the built-in stop-loss value may be hit. In that case, the investment is withdrawn from the market and settled at the residual value. In the event of a crash, the residual value is sometimes zero.
But, again protect your profits
You can trade in turbos independently, but also in turbos to protect your share package. If you expect the stock market to fall sharply, you can protect the shares with a turbo short. In that case, the profits on the turbos will be able to compensate for the losses on the share package. Earnings can also increase considerably in this scenario. With a leverage of 10 this is even tenfold.
The Turbo XL is a separate category. With this investment product, the financing level is equal to the stop-loss, so there is no residual value. The Turbo XL means more risk for the bank or broker. Therefore, the spread can be wider as the stop-loss level is approached.
The ING Group wants to compete with the Sprinter investment product. ING has 50 to 70 different Sprinters. The underlying values vary from shares, commodities to currencies. ING is ambitious: ING now has approximately 40% of the market. Banks and brokers make their profit through the difference in bid price and ask price, the so-called spread, and the financing interest on the loan.
If you want to protect your share package or just want to earn from stock market movements, you have many options when it comes to investing in turbos. By the way, there are comparable Speeders from Commerzbank, Sprinters from ING Bank or the trackers or ETFs.
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