Derivatives
Derivates are so called because they derive their value from that of an underlying asset such as a share or a bond. The most important kinds of derivative are options and futures (a form of standardised forward contract).
Options
give you the right, but not the obligation, to buy or sell a specific quantity of a specific underlying asset at a specific time in the future for a predetermined price (the strike price).
Futures
entail a contractual obligation to buy or sell a specific quantity of a specific underlying asset at a specific time in the future for a predetermined price.
LGT gives you access to exchange-traded options and futures as well as non-standardised derivatives traded directly between banks.
Leverage and the risks it brings with it
Leverage is a key element of financial derivatives. It means that you can achieve a higher return than with traditional investments for a relatively small capital outlay. It also involves higher levels of risk, so appropriate sureties (known as margins) and a thorough understanding of the products concerned are essential.
Our brochure entitled "Special risks in securities trading" describes the properties of derivatives and the risks associated with them. Your client advisor will be happy to advise you on how to invest in futures and options.
Your contact
- Liechtenstein
- Tel: +423 235 1122
- Austria
- Tel: +43 1 22759-0
- Switzerland
- Tel: +41 61 277 5600
- Singapore
- Tel: +65 6415 3800
- Hong Kong
- Tel: +852 2523 6180