If the KO threshold of 9.5737 is reached, the ticket is KO and you lose the entire stake. The spread of 3 cents (BID/ASK) is far too expensive. If you buy (0.16) you are almost 20% in the
minus. The spread should be no more than 1 cent.
minus. The spread should be no more than 1 cent.
•
66
•
@Finanzaristokrat thanks for the quick replyc I knew that I was knocked out at the KO threshold, but what is the basis here? It can't be that the basis is the same as the knock out, so I would immediately be at - 0.1 KO.
••
@Finanzaristokrat that means the bill is at 0.13 and I buy at 0.16 and am therefore already down 18% and need 3% + with the 6 leverage to catch up, if I have understood that correctly and how is that with this price then with the knock out?
••
@BamBamInvest the bill is KO as soon as the specified strike price is reached. Strike price = knockout threshold. You buy at a higher price.
••
@Finanzaristokrat yes ok I understood that correctly then but the current price is 10,98$ so at -11% I am out ?
(Do I have to convert dollars to euros because the current price is in dollars and the strike price is in euros? ) That would be the base price / knockout ? In other words, with 6 leverage - 2 % and I am out with the high spread, have I understood that correctly ?
(Do I have to convert dollars to euros because the current price is in dollars and the strike price is in euros? ) That would be the base price / knockout ? In other words, with 6 leverage - 2 % and I am out with the high spread, have I understood that correctly ?
••
@BamBamInvest As I see it at the moment, the 6.3 leverage is 13.9% away from the
(is always the price on the home exchange) 9.44$ away. In the after hour the NU hldg has increased and stands at 11.16$. All clear?
(is always the price on the home exchange) 9.44$ away. In the after hour the NU hldg has increased and stands at 11.16$. All clear?
••
@Finanzaristokrat I am not really aware of where the price is now and that it has risen by 1.73% to $11.16 in the after-hours trading. But how does this relate to the knock-out threshold? It would be helpful if the $ rate were converted into the euro rate. If I have understood this correctly now, the price in euros at the end of trading, e.g. at trategate, is 10.65 euros, tomorrow when after-hours trading is slightly higher. If I were in the bond now and the price were to fall from EUR 10.65 to EUR 9.4737 (knock-out threshold), the bond would be worthless. Did I understand that correctly? The price is displayed in the home stock exchange, but since the knock-out threshold and the underlying value are in euros, I have to use the euro value for orientation? Sorry but not so easy to understand
••
@Finanzaristokrat I have now looked at it with the DAX, where I have EUR/EUR is easier to understand than if you have displayed the price in $ and the underlying value in euros.
••
@BamBamInvest I'll stick with your screen. You have euro prices there and that's what we're using as a guide. If the price slips to or below the specified base value, you are KO and your stake is gone. At Scalable and Traderepublic, the underlying values are always displayed in $ and I then follow this in the chart at Webull in $. But it's actually easy to understand once you get the hang of it.
•
11
•@Finanzaristokrat yes thank you , in my screen above the $ rate is also listed with 10.98 $ at the end of trading . But since the underlying is in euros, this is confusing because I have to track it in euros, if I have understood it correctly 😄. I think I understand it now the $/€ rate just confused me . I'll have a look tomorrow and pay attention to the spread and then start a small position to test it. Thanks anyway ✌️
•
11
•@BamBamInvest This is really stupid with the $/€. How are you supposed to cope with that? Some others have also written that normally the base price is always displayed in the currency of the home market.
•
11
•