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HEDGESTREET INTRODUCES "VARIABLE HEDGELETS"
SAN MATEO, Calif., April 12, 2005 -- HedgeStreet Inc., the nation's first financial market that lets online investors trade innovative financial instruments based on future economic events, announced today the addition of a new category of financial instruments -- Variable Hedgelets.
Each Variable Hedgelet is created on an index or measurement much like a futures contract with a stop-win, stop-loss (cap and floor), and with a variable payout between $0 and $10. This differs from HedgeStreet's Yes/No Binary instruments which have a fixed $0 or $10 payout. A growing number of Variable Hedgelets will be offered in most of HedgeStreet's existing market categories, including currencies, commodities, interest rates, economic indicators, real estate and energy.
Said John Nafeh, Ph.D., founder and chief executive officer, "Variable Hedgelets serve as a compliment to HedgeStreet's existing derivative products, Yes/No Binary Hedgelets. And the introduction of variable payout instruments increases the scope of possible economic events upon which Hedgelets can be constructed, thus allowing us to create a truly unlimited number of financial instruments to be traded on HedgeStreet."
Traded in a similar fashion as futures contracts, Variable Hedgelets allow for the first time retail and institutional investors to engage in futures trading in a more preferable environment, one with limited risk that does not require large amounts of initial capital outlay. Additionally, the structure of Variable Hedgelets allows traders to "sell short" contracts, a feature not available with Binary Hedgelets. Trading on HedgeStreet is available to any qualified participant with a $500 initial deposit and an Internet connection.
About HedgeStreet
HedgeStreet Inc. is the nation's first financial market that lets online investors trade innovative financial instruments based on economic risks in their daily lives. A designated contract market (DCM) and a registered derivatives clearing organization (DCO), HedgeStreet is subject to regulatory oversight by the Commodity Futures Trading Commission (CFTC). HedgeStreet is a privately held company based in San Mateo, Calif. For more information, visit www.hedgestreet.com.
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