The broker I use does not have puts nor calls, but it has bull and bear certificates. I tried to google it but with no result. Is this only available in where I come from (Sweden)? These certificates are simple, a derivative of a stock that you buy with a leverage of 1-20X. Why not buy these instead of puts and calls (if they exist)
Why do I never see discussion of certificates
byu/Intrepid_Ad9628 instocks
Posted by Intrepid_Ad9628
4 Comments
CFDs? They don’t have those in the US.
>Why not buy these instead of puts and calls
I don’t see how it could achieve the same as for instance a protective put? Or an iron condor?
Or basically any strategy other than pure gambling that a stock will go up or down.
They pretty much only exist in countries where options trading is very restrictive for retail. Which isn’t the US, which means barely anyone talks about them.
If you can buy options, why would you buy certificates? You’re just adding a middle man, the issuing bank, who adds unnecessary risk.
CFDs, a type of leveraged product.
I’m in Europe as well and I didn’t know this by “certificate”.