Barrier vs CFD vs Turbo24

[LuigiLuigi]

Good afternon, another super newbie question, I can't get my head around this...

what are the main differences between buying  a

• SP500 Barrier Call
• SP500 CFD
• SP500 Long Turbo 24

Do the Barrier and Turbo24 work similiar to a CFD with a stop loss? If so, what's the point in buying a Barrier or a Turbo24?

Thanks in advance for your help

Luigi

[Kodiak]

Depends on location 

Barrier is a kind of option with stop and limit orders and more leverage

Turbo24 is a exchange traded kind of warrent and can be more suitable in for example Germany and Sweden tax wise

[AndaIG]

Hi @LuigiLuigi

Thanks for the question

There are a few differences, however these are some of the important ones to take note of. 

Barriers

• You have flexibility over leverage
• They are limited risk(you can only lose the premium paid to open) but the potential profit is unlimited
• Barriers have an expiry

Turbos

• You have flexibility over leverage(You decide your leverage based on the KO-level)
• Also limited risk- you know maximum loss when you open the trade
• Traded on Exchange
• Traded 24/5
• Possible to add a stop to avoid being knocked out
• All fees included in initial cost of open (except the commission). Overnight funding is not debited from turbo account

In summary Barriers/Turbos offer flexibility over leverage, limited risk and are less capital intensive than CFDs. You can get exposure for far less than in a CFD. 

Hope this helps

All the best 

Anda

[LuigiLuigi]

Thank you very much for you help 👍

[LuigiLuigi]

Quick question, is overnight funding debited from barrier account?