Deutsche Börse Launches New Brent Crude Oil ETC from BNP Paribas

Deutsche Börse Group announced today that a new Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term traded commodity (ETC) issued by BNP Paribas Arbitrage Issuance is now tradable on Xetra and Börse Frankfurt, adding to the recently introduced Boost ETCs and ETNs, as reported by Finance Magnates.

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The BNP Paribas RICI Enhanced Brent TR Index ETC enables investors to participate in the performance of Brent crude oil. The reference index contains Brent crude oil futures contracts with differing maturities and is denominated in US dollars.

The limited maturity of the futures contracts requires a switch prior to expiry in exchange for a futures contract with the next expiry date (roll-over). Possible losses as a result of the roll-over are minimised using a selection procedure.

According to the Börse’s statement, only contracts expiring in June or December are bought for the index. A rollover takes place twice a year and takes five trading days.

The ETCs, which refer to indices in the Nasdaq Commodity Index Family, enable investors to participate in the rising or falling performance of one-month futures contracts on WTI oil and Brent oil with a Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term factor of up to three.

Deutsche Börse’s product range in its ETF and ETP segment currently comprises 1,127 ETFs, 186 ETCs and 136 ETNs together with an average monthly trading volume of around €15 billion, making Xetra Europe’s primary trading venue.