EDUCATION

Trade commodities, indices, currencies and stocks on the stock exchange 

Through exchange-traded investment products, you can invest in commodities, indices, currencies, and stocks directly on the stock exchange through your stock portfolio. This is possible because the value development of an investment product depends on an underlying asset, which can be, for example, gold, oil, OMXS30, S&P500, Facebook, or Ericsson. Since there are several types of exchange-traded investment products that have different functions and risks, it is important that you understand how the investment product works. Examples of exchange-traded investment products are Bull & Bear certificates, Mini futures, Unlimited turbos/Mini futures BEST, turbo warrants, and warrants.

You can see which underlying assets you can trade through exchange-traded investment products on the NGM exchange in our investment matrix.

Invest in both up and down markets

Upswing

The value development of an exchange-traded investment product can follow, for example, the price of oil:

  • If the price of oil goes up, the value of the investment product goes up. 
  • If the price of oil goes down, the value of the investment product goes down. 

This is a feature of some investment products and is commonly referred to as "bull," "call," "long," or "buy."

Downswing

Similarly, but the opposite, the value development of some exchange-traded investment products follows the underlying asset:

  • If the price of oil goes down, the value of the investment product goes up.
  • If the price of oil goes up, the value of the investment product goes down. 

This is a feature of some investment products and is commonly referred to as "bear," "put," "short," or "sell."

Invest with leverage 

Investing with leverage means that with a small investment, you can get a large return. This is possible because when you buy an investment product with leverage, you pay less than if you had bought the underlying asset. Example: If an exchange-traded investment product has leverage of 4, it essentially means that its value development will be 4 times as large as the change in the underlying asset. Also, remember that leverage works in both directions.