ABOUT Leverage Shares 3x Palantir ETP Securities
This exchange-traded product (ETP) offers investors a leveraged exposure to the daily performance of a specific technology company known for its data analytics software. Unlike a traditional stock investment that tracks the company's price one-to-one, this security aims to amplify the daily returns of the underlying stock by a factor of three. This means that if the underlying stock's price increases by 1% on a given day, this ETP would, in theory, increase by approximately 3%. Conversely, if the underlying stock declines by 1%, this ETP would decline by approximately 3%. This leveraged effect is achieved through the use of financial derivatives. It is crucial to understand that this leveraged return is reset daily. This reset mechanism means that the cumulative returns of the ETP over a period of time can deviate significantly from three times the cumulative return of the underlying stock, especially in volatile markets. Therefore, this product is designed for short-term trading, not for long-term investment. It is important to remember that while leverage can magnify gains, it can also magnify losses. The highly volatile nature of the product coupled with the daily reset mechanism means that this product can experience substantial losses, and is therefore not suitable for all investors. The underlying company is known for its data analytics software that is used by government and commercial clients, offering them solutions for data integration, analysis, and visualization. The company’s software platforms are designed to handle and analyze large and complex datasets, which can be applied to various fields like finance, national security, and healthcare.