Expected
yield per annum
31-33%
  • Minimal Investment amount 2700 USD
  • Expiration date: 23.01.2019
  • Capital Protection: 80%

Twitter is one of the world's largest social networks for messaging. The number of registered users is 1.3 billion people, of which active are 350 million people.  The official level of the company's capitalization is more than 22.99 billion dollars, and the number of employees around the world is about 4 thousand people.*

Underlying Assets Twitter
Currency USD
Expected yield, % per annum 31-33%
Volume of investments 2700 USD
Term of placement of the deposit up to 23.01.2019
Protection of capital 80%
Participation Rate 0.65
Direction of Underlying Asset Price Movement on a price increase

Growth factors:

  • Lack of new competitors. The youngest of the most popular social networks remains Instagram, founded in 2010, that is, for already 8 years, there have been no new strong players in this market.
  • After the "successful" end of the IPO and reaching the bottom by the stock price in early 2016, it is for two years that the company's shares have been growing steadily, which cannot but reassure investors.
  • Increase in the number of users. According to analysts, in 2018, the number of registered Twitter users will reach 1.5 billion people, and the number of active users will go up to 410 million people, which will mean increase by 15-17%.
  • Developments. In 2018, a number of important events are planned to happen in the world, including the Winter Olympics in PyeongChang, the World Football Cup in Russia, the Presidential election in Russia, etc. The activity of users in such periods is noticeably increasing, as both news agencies and ordinary people begin to use social networks much more actively during periods of socially significant events, of which the 2016 US presidential election is an example. The indices of the company's attractiveness directly depend on the activity of its users.

 

 

Analysis:

The growth cycle of Twitter shares is 9 months during the calendar year, so depending on the moment of entering the transaction, the expected growth of the share price will be 32-45% at the time of expiration. At the current moment, an upward impulse wave is forming.

 

This product allows you to participate in the growth of the underlying asset wherein the investor risks with a limited amount, which is determinated by the Capital protection level.

The product is dedicated specifically for conservative investors, where they can  define and limit the risks of such products themselves. As such, these products provide a great opportunity to receive relativelly high income whilst minimising the possibility of capital loss.

*according to the information from the company's website.

  • Product with capital protection
  • Minimal Investment amount 2700 USD

How the product works

Once the contract is concluded, the initial price of the underlying asset, the Capital protection level, and the participation rate are recorded.

Investor risks are limited to the amount determinated by the Capital protection level.
A product with 100% protection level carries the lowest possible risk and the lowest potential yield.

The repayment to the client is calculated according to the following formula:
Repayment = Investment amount * Capital protection level + Participation rate * Price change- Commission.
Where the investment amount is taken as 100%, and the price change is calculated as follows (Current Price – Initial Price) / Initial Price * 100%.

The commission for a investment product creation is 2% of the initial investment and is charged at the time of product expiration.

If at the Expiration date the price of the underlying asset is higher than the initial price, the investor is paid 100% of the invested funds and an income equal to the product of the participation rate and the growth of the underlying asset. Conversely, the investor is paid the invested funds in accordance with the Capital protection level.

The parameters of the products are indicative and may vary depending on the market situation.

 

Examples:

1. The price of the underlying security moves in the direction chosen by the investor.

In this case, the investor receives the invested amount calculated by the formula: 100% (initial investment) * 80% (Capital protection level) + 0.65 (participation rate) * 60% (price change) = 119%

2. The underlying security’s price moves in the opposite direction and finished below the Capital protection level.

In this case, the investor receives the invested amount calculated by the formula: 100% (initial investment) * 80% (Capital protection level) = 80%

Attention!

The product yields shown in the examples and past financial performance do not guarantee future profits. All investment products are denominated in USD. The commission for an investment product creation is 2% of the initial investment and is charged at the time of product expiration. The expected yield of investment products is given in annualized percentage form.

Note:

The protective investment component is allocated to fixed income products (Eurobonds and deposit schemes at leading banks). NordFX cannot be held responsible for any potential risks associated with the default of Eurobond issuers or the bankruptcy or default of any of the banks in which the deposits are held.

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