I have only basic limited knowledge about financial derivatives and I did not find exactly what I was searching for. I found open end turbo call, knock outs, but I am searching for this:
Underlying should be a regular "famous" stock e.g. in German DAX, let's consider BMW.
Based on this underlying I am searching for a derivative which does the following:
- In a long position I want to have a leverage factor of about 5 to 20. So if the stock increases by one unit (percent) the the value of my position should increase by factor 5 resp. factor 20 (percent). If it decreases of course I loose by this factor.
- Second I want to have a constant factor. This factor should not change and stay stable over the complete investment time.
- Third I want to have it open end. So I want to hold it for quite a long time and stay flexible to be able to sell whenever I want, lets say quite long means 2-5 years.
- It should have no knock-out.
- Ideally there shouldn't be any payments in between. So I buy and I sell, but no dividend or so. But this is not so important.
How is this called? Can you give me a tradeable example for BMW?