Spike - thanks.

Essentially what someone is trying to sell me is a multi manager index.

The index contains four underlying hedge fund managers, all trading currencies.

There are two products, one has 200% exposure and the other has 400% exposure.

The 200% is capital protected meaning that you get 100% of your money back after a period and exposure to the index which is at 400% exposure.

The 400% is not capital protected and provides 400% exposure to the index and the return of the underlying managers.

I understand that one product therefore has 2x exposure and the other has 4x exposure and if I am working on the basis of a $100,000 investment then I'm really getting a $200,000 exposure or a $400,000 exposure.

Any further help would be most appreciated.

Seeing as I know nothing about margin trading or trading with leverage, what I would like to know is, given this product is being structured by a global investment bank - how are they making money from this if they are providing the leverage? I guess I'm just confused by the mechanics. If the index or investment makes money and I get 400% exposure and outsized returns then someone has to lose out. Who is losing here? Because the investment is in the managers themselves rather than financial instruments then there's nobody on the other side of the trade.