Clever Geek Handbook

How to get additional income for the company using the exchange: investment in structural products





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Not all entrepreneurs are aware of this, but there are opportunities for corporate investment in the modern stock market. How to earn extra money for a company with minimal risk?



Note : the text will focus on investments on the Moscow Exchange using the services of licensed brokers, whose work is controlled by the Central Bank. The topic of structural products has nothing to do with working on Forex and other types of financial activities. To complete the operations described in the material, you will need to open a brokerage account .



What are structural products



Not only stocks are sold and bought on the stock exchange. Significantly popular with investors are the so-called derivatives - futures and options. They are based on a basic asset - for example, a share of a certain company, and they sell and buy the right or obligation in the future to make a deal with this asset at a predetermined price.



But you can dive even deeper and create, on the basis of several such derivatives, another one with previously known parameters of market risk. This will be a structural product .



The main point is that when using structural products, the risk of financial losses can be completely eliminated. This reduces possible profits, but provides guaranteed protection - in case of unfavorable dynamics of the underlying asset, the company will regain absolutely all of the invested amount.



How much can you earn



The profitability of a structural product varies depending on the participation rate and changes in the value of the underlying asset (stock, index, etc.)



Example:





If you have chosen a participation rate of 70%, and the price of the underlying asset has changed in the direction you need by 10%, then the income will be 7%.



That is, the profit turned out to be less than when investing in the underlying asset itself, but the company guaranteed itself the safety of funds if its price went in an unfavorable direction.



In one of the previous articles, we examined the use of structural products for private investors using real strategies as of August of this year . Here is the specification of one of them (capital protection at 100%):







Using structural products allows you to receive income that will be higher than when investing in the underlying asset itself - for this you need to adjust the parameters of the product (its duration, level of capital protection, etc.).



How to invest in structural products



Everything is quite simple - first you need to open a corporate brokerage account, you can do this online (select the option “with the help of a consultant”).



After opening an account, you will get access to your personal account, where you can arrange a structural product . The contract records all of its parameters:





That's all - it remains only to wait for the fulfillment of the given conditions.



Useful links on the topic of investment and stock trading:





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