Expected
yield per annum
26-29%
  • Minimal Investment amount 6200 USD
  • Expiration date: 20.02.2019
  • Capital Protection: 60%

NVidia Corporation is one of the largest companies in the world, manufacturing graphics accelerators and processors. As of end 2017, the official level of the company's capitalization has exceeded 138,19 billion dollars, and the number of employees around the world is more than 10 thousand people.*

Underlying Assets NVIDIA
Currency USD
Expected yield, % per annum 26-29%
Volume of investments 6200 USD
Term of placement of the deposit up to 20.02.2019
Protection of capital 60%
Participation Rate 1.8
Direction of Underlying Asset Price Movement on a price increase

Growth factors:

  • We have already mentioned the NVidia capitalization, but it is worth noting that a third of this amount was added by the company in the third and fourth quarters of 2017, since in mid-July 2017, the capitalization was 95.5 billion dollars.
  • NVidia Corporation is the leader among high-tech companies in the world as for the dynamics of growth of all financial indicators over the past 2 years.
  • The stock price increased from $ 32.23 per share to $ 193.57 per share in the period from January 1, 2016 to January 1, 2018, which is 500.58% of the company's stock price growth. None of the competitors have even approximate figures.
  • The company exists since 1993, but such an active growth has occurred only now. This phenomenon is due to 2 factors: the growth in demand for all types of cryptocurrencies and the technical solution for cryptocurrency mining by NVidia. In mid-2016, a revolutionary new GeForce 10 graphics processor was presented to the world, its performance was hundreds of times superior to its analogs. This processor allowed to increase the speed of mining cryptocurrencies, which caused an extremely high demand for the NVidia equipment.

 

Analysis:

After overcoming the psychological resistance level of $ 200 per share, around which the price was traded during the last months of 2017, the rapid growth of the NVidia stock price continued. While maintaining the dynamics of absolute growth observed over the past two years, the expected growth in quotations is 26-31.6% over the next year.

 

 

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 6200 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) * 60% (Capital protection level) + 1.8 (participation rate) * 60% (price change) = 168%

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) * 60% (Capital protection level) = 60%

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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