Turbo
Faster share exposure, tighter risk
A turbo is a listed-style product on a share with a knockout barrier. You post less cash than buying the share, and the position ends if the price touches the barrier. That cap is the point: the loss is defined, and so is the moment the trade dies.
01 — Turbo
The barrier is the product
Choose a turbo because of where the knockout sits, not because the name sounds fast. Closer barriers cost less and expire more often.
Open account
02 — Turbo
No extra margin call
Unlike an ordinary CFD, you should not be asked for more margin beyond the amount in the turbo. If the barrier hits, the trade is over.
Open account
03 — Turbo
Gaps still count
If the share opens through the barrier, the knockout happens at the open. You do not get to trade out in between.
Open account
04 — Turbo
Short shelf life
Turbos suit a view with a horizon. They are a poor way to 'hold a company' for years.
Open account- Barrier ends the trade
- Knockout
- Maximum loss at the barrier
- Defined
- Underlying is a company
- Share
- Settled result
- USD
Shares a turbo is written on
The company CFD. The knockout barrier lives on the turbo, not in this last price.
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The barrier is the product
Choose a turbo because of where the knockout sits, not because the name sounds fast. Closer barriers cost less and expire more often.
No extra margin call
Unlike an ordinary CFD, you should not be asked for more margin beyond the amount in the turbo. If the barrier hits, the trade is over.
Gaps still count
If the share opens through the barrier, the knockout happens at the open. You do not get to trade out in between.
Short shelf life
Turbos suit a view with a horizon. They are a poor way to 'hold a company' for years.
Long and short turbos
A long turbo gains when the share rises, until the barrier below is hit. A short turbo gains when the share falls, until the barrier above is hit.
- The distance to the barrier is your risk budget.
- A tighter barrier is cheaper and more fragile.
- Financing is embedded in how the price decays over time.
- Confirm the ratio: one turbo is not always one share.
Compared with a share CFD
A CFD stays open and can ask for more margin. A turbo ends itself.
- Use a CFD when you want to manage the stop yourself.
- Use a turbo when you want the loss capped at the premium.
- Neither one gives you the share.
- Both can go to zero of the cash you posted.
Step 1
Pick the share
Start from a company you already understand.
Step 2
Pick the barrier
Read how far the knockout is from the current price.
Step 3
Accept the expiry
If price touches the barrier, the position closes. There is no second chance on that contract.
FAQ
Can I lose more than I paid?
The design of a turbo is that the loss stops at the barrier. A gap through the barrier still ends the product. You should not be liable beyond the amount paid for that turbo.
Why does the turbo lag the share?
The price includes financing and the distance to the barrier. It will not tick one-for-one with the share in dollar terms.
Is this leverage?
Yes. A small premium controls a larger share exposure, which is why the barrier can be reached quickly.