ABOUT Leverage Shares 3x Long Gold ETP Securities
This entity offers a leveraged investment product designed to track the performance of gold prices, aiming to deliver three times the daily percentage change in the spot price of gold. It is structured as an Exchange Traded Product (ETP), which means it trades on a stock exchange like a stock, providing investors with a relatively accessible and liquid way to gain exposure to gold. Unlike physically holding gold or investing in gold mining companies, this ETP uses financial instruments to replicate the returns of gold, specifically employing leverage to amplify both gains and losses. This leverage means that for every 1% increase in the price of gold, the value of this product is designed to increase by 3%, and conversely, a 1% decrease in the price of gold would result in a 3% decrease in the value of the product. This mechanism is reset daily, meaning the leveraged return is only guaranteed for a single trading session. Due to the daily compounding of leverage, long term results can vary significantly from three times the underlying asset's performance. Consequently, this type of product is more suitable for short-term trading and hedging strategies by investors with a higher risk tolerance than a straightforward investment in gold, as the amplified price movements can lead to substantial returns but also to substantial losses, especially in volatile gold markets.