Today, the Vienna Stock Exchange started calculating and publishing new Short and Leverage Indices which are based on the indices ATX, CECE Composite and RDX. Leverage Indices are linked to the performance of an underlying index and reproduce its daily changes with a certain leverage. Therefore, positive or negative changes in the underlying index will result in the respective leveraged performance of the Leverage Index. In addition, the costs of financing the leveraged positions are taken into account.
Short Indices are linked inversely to the performance of an underlying index and reproduce its daily changes with a negative leverage. Furthermore, the benefit of earning interest for the short position is considered.
Among the new indices are Double Short Indices with a leverage of -2 and Leverage Indices, which reproduce the development of the underlying index with a leverage of 2 and 4.
The indices are designed as a tradable indices to be used as an underlying instrument for structured products.