Buy Low, Sell Lower

Epstein, Gady; Jie, Li
September 2009
Forbes Asia;9/21/2009, Vol. 5 Issue 14, p22
The article presents information related to accumulator contracts and its increasing prevalence in China. In this, investor commits to accumulate large blocks of shares of a Hong Kong-listed stock every day for a long period and if the stock goes up a certain amount, often only 5% or so, accumulator contract terminates, but if the stock tanks, one will have to keep buying it. Many Hong Kong millionaires have lost around 2 billion dollars last fall on accumulator bets placed with several banks.


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