trading waves anyone heard of these????

  1. 11,223 Posts.
    Recieved this in an email this morning, I have not had a chance to look at it properly yet but sounds like another interesting trading alternative.

    Anyone know more about them?

    What is a WAVE?

    WAVEs are an ASX listed, highly geared, low cost trading alternative to trading warrants, futures and contracts for difference. WAVEsoffer investors approximately Delta 1 (one for one exposure) to ASX listed shares or indices for a low premium, with minimal time decay.

    WAVEsare an innovative product introduced by Deutsche Bank into the Australian market. The most relevant comparison to WAVEsis the margin investors pay in order to gain exposure to a futures contract over a share or index, or the premium investors pay for share exposure through a contract for difference.

    If the share price or index level falls, investors who are long a futures contract or a contract for difference are exposed to ongoing margin calls. With WAVEs however, once the share price or index touches or falls below the exercise price, investors will not be exposed to further economic detriment, as the WAVEs will effectively be 'knocked out', (knock-out = exercise price) allowing you to reassess your strategy.

    Therefore, WAVEs offer investors similar share or index exposure to that of a futures contract or contract for difference, with an added feature that prevents unlimited losses.

    How do WAVEs work?

    Investors who purchase WAVEs do not invest the full amount required for the purchase of the underlying share or index. They pay the difference between the current share price or index level and the exercise price of the WAVE, plus a small premium.

    WAVEs are structured so that at expiration, assuming the share price or index level has not touched the exercise price, they will pay the difference between the closing share price, or in the case of index WAVEsTM, the Special Opening Quotation*, and the pre-determined exercise price.

    What are the benefits of WAVEs?
    Approximately 1:1 price movement to the underlying
    Highly Leveraged
    Low cost and minimal time decay
    ASX listed ensuring liquidity and transparency
    Choice of Puts and Calls
    Choice of Shares and Index WAVEs
    How many WAVES will be issued?

    Deutsche Bank intends to issue 72 WAVES covering 11 underlying shares and one underlying index- the S&P/ASX200 index. Each underlying share or index currently has 3 or more call WAVES with differing strikes and 3 or more put WAVES with differing strikes.

    If you would like to speak with Deutsche Bank about WAVEs or any of the Deutsche Bank structured products, call 1300 656 287 or click here for

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