Expected
yield per annum
14-17%
  • Minimal Investment amount 2900 USD
  • Expiration date: 23.01.2019
  • Capital Protection: 75%

Tripadvisor is the world's largest travel website, assisting customers choose the where to go, a travel brand and much more. The level of capitalization is $5.81 billion, the number of employees is 3 thousand people.*

Underlying Assets Tripadvisor
Currency USD
Expected yield, % per annum 14-17%
Volume of investments 2900 USD
Term of placement of the deposit up to 23.01.2019
Protection of capital 75%
Participation Rate 0.75
Direction of Underlying Asset Price Movement on a price increase

Growth factors:

  • Brand recognition. Since 2014, the Tripadvisor website is the most recognizable and visited among similar websites.
  • Seasonality. Tourism is clearly linked to seasons. Soon, all major summer tourist destinations will start to actively get visitors, so the Tripadvisor traffic will increase many times, and at the same time, advertisers and investors will become more active.
  • Attractiveness. It is already for a year that there are rumors about the IT giant Facebook intentions to acquire the website. Every new message about this transaction fuels interest from investors, and if such a transaction does take place, the share price of the company may grow several times.

 

Analysis:

From the point of view of fundamental analysis and historical regularity, the value of Tripadvisor shares is steadily increasing from mid-spring to mid-autumn. As we have already said, the company is clearly linked to seasonality, and the nearest technical goal of price quotes is the level of $48 per share, which will amount to a growth of 14.6%.

 

 

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 2900 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) * 75% (Capital protection level) + 0.75 (participation rate) * 60% (price change) = 120%

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) * 75% (Capital protection level) = 75%

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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