Risk of total loss

Key figure in warrant trading indicating the probability of total loss of an investment

The risk of total loss enables investors to select a warrant that matches their risk profile. It indicates the probability of a leverage product expiring without value on its maturity date.

The calulation is based on a theoretical value, which considers the time to maturity, the difference between the current price of the underlying and the strike price, the interest rate for risk-free investments and the historical volatility of the underlying.

Synonym: Probability of total loss