[gottorf]

I'm not familiar with turbos, but to me it sounds like a CFD? How does a short position on a turbo prevent you from losing more than what you "put in"[0]? If you're shorting underlying X at price Y with a turbo, and price moves to Y+10, you're going to lose 10 times the leverage factor. You could have stop orders, but those are not guaranteed to fill at a price that would cap your loss to a desired amount.

> the broker is required by regulation to "just close and not ask for more"

Some American brokers will also forcibly close your position instead of issuing a margin call. Do you mean that under those national regulations, the broker is required to eat the losses?

[0]: in quotes, since with a short position it's not really the case that you put something in.

[KellyCriterion]

It is somehow comparable but with a CFD you are betting against the market maker /issuer of the CFD, while with a turbo you bet against the market directly - the issuer is just arranging the countposition in the background.

The loss is implemented by a knockout value, depending on your leverage. In all EU countries there is no margin call allowed for retailers, but this is not relevant for turbos anyway. The loss is included in the deprecation of the price of the turbo, the issuer is just the middleman, being neutral. Compared to a CFD issuer, which can print whatever price it wants. With a turbo, the price of the turbo instrument is connected by a simple formula with the underlying price.

A turbo has an ISIN, and is highly regulated by the Financial Supervision Authorities.

Actually, turbos are a professoinal instrument but they are sold to retailers as well in most countries.

[KellyCriterion]

And for sure, for a short position you would have to pay also the price of the instrument, which includes all the parameters/leverage? Shorts are in a way more efficient that the financing costs are working a liiiiitttle bit towards you, because of the interbanking rate that the issuer is applying, but this is negligibe for singe positions below 1m - and in reverse, with 1m per position, you wont use turbos, usually, its not the optimal instrument in those cases, in most cases

But nontheless, you as instrument user pay something, for sure.