Investing in volatile instruments can carry greater risk. Our volatility alerts serve as a proactive measure to inform and educate our clients, helping them make an informed decision.
How is a “volatile instrument” defined?
We base the definition on the 90-day volatility data we received from leading market data vendors. We have a predefined volatility threshold, based on historical data analysis and market trends, that trigger the alert.
Whilst 90 day volatility is a commonly used metric to measure the degree of variation of an instruments price and therefore its potential riskiness, it is calculated using data points over the past 90 days and does not guarantee future price movements will be as equally volatile.
How can I benefit from these alerts?
The goal of the alerts is to notify you when you are about to invest in a volatile instrument. It is not to say that you should avoid investing in such instruments, but rather making sure that they are aligned with your investment strategy and risk tolerance.
How can I respond to an alert and does it affect my investing process?
The alert is designed to inform you of the potential risks and give you time to reconsider your decision. You can choose to proceed with the investments or go back and revise your investment strategy.
The alert is only an informative step and the investment choice is still up to you.
How can I opt out of these alerts?
You would get the alert every time when you are looking to invest in a volatile instrument. If you prefer not to receive the alerts, you can tick “Don’t show again” to stop them.