What's this product called?

[bedobi]

I'm migrating to Australia and would like to know if any Australian brokers offer the equivalent of a product that my local broker (not in Australia) offers.

It's basically a derivative with no end/expiry date the value of which is determined by the value of the underlying relative to a preset level. Should the underlying reach the preset level the product becomes worthless, but no more than the price paid can be lost. (i.e. they can't go negative, they can't put the owner in debt)

An example is B SHRTDAX KS CBK (ISIN DE000CR4XC26) issued by Deutsche Bank. (prospect http://prospect.ngm.se/prospect-en_US/20150123154601.pdf)

Locally the product is referred to as "mini futures" but it doesn't seem to be the same type of product as those referred to as mini futures in e.g. the US or Australia.

 

[skyQuake]

you're looking for Turbo warrants/one touch warrants/barrier options

 

[bedobi]

you're looking for Turbo warrants/one touch warrants/barrier options

Thanks a lot! Some follow up questions: Are they available with Australian stocks as underlying? Do most brokers in Australia offer them? Or only particular brokers?

 

[Boggo]

Thanks a lot! Some follow up questions: Are they available with Australian stocks as underlying? Do most brokers in Australia offer them? Or only particular brokers?

If you go to this site below and have a look at the "quick Search" or "Products" tabs it will give you an idea of what they have on offer.

I use instalment warrants on the major cap stocks, good leverage and using TLS as an example buying the same dollar value of warrants instead of the underlying gives you around 15% dividend yield.

The obvious risks are of course a factor.

https://au.citifirst.com/

 

[bedobi]

If you go to this site below and have a look at the "quick Search" or "Products" tabs it will give you an idea of what they have on offer.

I use instalment warrants on the major cap stocks, good leverage and using TLS as an example buying the same dollar value of warrants instead of the underlying gives you around 15% dividend yield.

The obvious risks are of course a factor.

https://au.citifirst.com/

Thanks.

Seems like Citi also refers to what I'm looking for as minis or mini futures. Their warrants have end/expiry dates and seem to involve actually buying the underlying. (which I don't want)

 

[Boggo]

Thanks.

Seems like Citi also refers to what I'm looking for as minis or mini futures. Their warrants have end/expiry dates and seem to involve actually buying the underlying. (which I don't want)

Because they have an expiry doesn't mean you don't have to buy the underlying, sell before the expiry date, there is always an overlapping warrant to buy into and continue with the process.

 

[skyQuake]

Only a guess here but it looks like you're after those Turbo warrants rather than installment warrants
(single touch knockout, delta of approx 1)