What are ETIMs?
A ETIM stands for ELECTRONIC TRADING IMMEDIATE MATURE. When you trade ETIMs, you don’t physically own the underlying asset, instead, you are speculating on the price movement of that asset (financial instrument). This means you can take advantage of prices move up or down in value, on thousands of global financial markets including currencies, indices, commodities and more. This arguably gives you greater trading freedom.
ETIMs are a gearing financial trading product, which essentially means you are trading on margin. Geared trading allows an investor to put up only a small upfront investment in order to open a much larger position. This means rather than paying the full value of the position, you only need to pay a percentage of the position, which is called “initial margi”’. Trading ETIMs increases your buying power, maximizing your trading capital and potential profits. However, it is important to note that leveraged trading also exposes you to more risk, as losses can be equally magnified if the trade goes against you, due to the fact they would be based on the full value of the position. It is possible to lose your entire investment, if you are a Retail client. Professional clients can lose more than their deposits and they may be required to deposit additional funds to cover their losses.
Think of leverage as a broker enabling you to make the most of your trading capital.
ETIMProducts trading are leveraged products and as such carry a high level of risk to your capital which can result in losses greater than your initial deposit. These products may not be suitable for all investors. ETIMs are not suitable for pension building and income. Ensure you fully understand all risks involved and seek independent advice if necessary.