What are the main risks I face when investing in stocks or ETFs?

Generally, as with every investment, considerable risks are involved. At Bitpanda, you are not investing in traditional stocks or ETFs but derivatives. This means that you face risks at the level of the underlying asset, as well as at the level of Bitpanda, the issuer of the derivative.

The value of the underlying stock or ETF is mirrored 1:1 in the value of the derivative. You are therefore exposed to the same market and volatility risks as the respective underlying asset. Consequently, your whole investment is potentially put at risk. Companies can go bankrupt unexpectedly or lose significant value rapidly.

Apart from the risk resulting from the underlying asset, there is the risk of Bitpanda not being able to operate for various reasons. Although several layers are in place to protect your investment, a complete loss is still possible. All these risks are described in detail in the prospectus.

To make a sound investment decision, you can make use of all the documents that are offered from our side.

Keep in mind

Bitpanda Stocks enables you to make fractional investments. To allow for this, Bitpanda issues a derivative contract which is backed by the underlying stock or ETF. You can read more about this here.