Any time and make them effective. The person who decides to invest in them cannot lose an amount greater than the cost of acquisition. In other words, the maximum loss is the amount initially invested. There is public, complete and understandable information on these products for the small investor. They are not derivative products. Clear examples of this type of product would be treasury bills, bonds and debentures. They would also be made up of traditional investment funds or shares listed on regulated markets. On the other hand, we would have the complex products. These would be made up of all those that do not meet some of the characteristics observed in the previous points.

They are not derivative

In addition, its use implies a higher risk for the investor and less liquidity, where it may happen that its value is not known until a certain moment. In this sense, derivative examples of this type of product can be found in financial derivatives, options, futures, swaps, warrants, cfds and hedge Latvia Phone Number funds. General, it will include those products structured by derivatives or with leverage. For greater depth, i provide the following link provided by the cnmv, on the cataloging of financial instruments as complex or non-complex the esma and complex financial products at the level of risks, the esma (european securities and markets authority) proposes a document,

As we have mentioned

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where it establishes the dangers involved in investing in complex financial products. Since due to their characteristics they can present both benefits and risks that are difficult to understand. Specifically, in a document known as “risks of investments in complex products” where a wording of the products classified in this category is created. As we have mentioned before, complex financial products can be seen in convertible bonds, certificates, options, etc. In general, the esma also identifies this type of product in financial derivatives.

Let us remember that derivatives are financial instruments , whose value is based on the value of another financial asset. A general asset or an index of interest rates or currencies. In this way, they can be made up of assets with a complex valuation. Whose prices are not available to the general public. In turn, in their development, these products can be made up of. Variables or mathematical formulas to specify a certain profitability or to

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