When establishing a Citibank Equity-Linked Account, timing, choice of base currency, choice of underlying share, tenure and your personal investment references are all crucial. You may consider the Citibank Equity-Linked Account if:
You are generally bullish on the underlying share. You are of the view that you have a high probability of receiving your principal and interest in cash because the closing price of the underlying share on Expiry Date (the date on which the closing price of the underlying share is compared to the Strike Price to determine outcome of the Citibank Equity-Linked Account) is likely to be at or above the Strike Price.
The share price of the underlying share appears to be stable.In this case, the limited share price movement means you will benefit from the higher interest by establishing a Citibank Equity-Linked Account. This higher interest may cushion some of the loss if your principal is used to purchase the underlying share at the Strike Price.
You are willing to receive physical delivery of the underlying share at the predetermined Strike Price if the share trades below the Strike Price on a certain date resulting in an unrealized loss of capital on investment.
You are willing to accept no principal protection at maturity.