Bull and Bear Certificates: Trading with Leverage
Bull and Bear certificates are exchange-traded products that allow you to take a leveraged position in stocks, indices, and commodities. They are traded on the stock exchange like regular shares.
- Bull certificate: Gains value when the underlying asset rises.
- Bear certificate: Gains value when the underlying asset falls.
These products involve high risk. You can lose your entire invested capital. Suitable only for experienced investors.
How Leverage Works
The leverage in Bull and Bear certificates is applied daily to the underlying asset’s daily movement. Available leverage levels range from 1.5x to 20x.
Example with 3x leverage:
| Underlying Asset Movement | Bull X3 | Bear X3 |
|---|---|---|
| +3% | +9% | -9% |
| -3% | -9% | +9% |
Higher leverage amplifies both potential gains and potential losses proportionally.
The Compound Interest Effect
Because leverage is reset daily, the cumulative performance of a Bull or Bear certificate over multiple days can differ from a simple multiple of the underlying asset’s total movement over the same period. This compounding effect can work in your favor or against you depending on market conditions.
Trading Hours
The following hours apply to Warrants, Bull and Bear certificates, Mini Futures, and Unlimited Turbos traded on Nasdaq First North Stockholm. Times are shown in local time.
| Underlying Asset | Opens at | Closes at |
|---|---|---|
| Nasdaq First North | 09:00 | 17:25 |
| Swedish stocks | 09:00 | 17:25 |
| German stocks | 09:00 | 21:55 (official close 22:00) |
| American stocks | 09:00 | 21:55 (official close 22:00) |
| US index futures | 08:15 | 21:55 (official close 22:00) |
| Commodities | 08:15 | 02:55 (some close at 20:00) |
| DAX futures | 08:15 | 21:55 (rebalancing 17:30) |
| STOXX50 futures | 08:15 | 21:55 (rebalancing 17:30) |
| Sector indices | 09:00 | 17:25 |
| Currency (FX) | 08:15 | 22:00 |
Legal Structure
Bull and Bear certificates issued by Quartal are structured as Exchange Traded Notes (ETNs), issued under the Quartal Bank Abp Warrant and Certificate Program (Base Prospectus).
Before purchasing, read the Base Prospectus and the Final Terms for the specific product. Both documents are available on each product page in online banking and at Quartal.com.
Important Notice
Bull and Bear certificates are complex financial instruments. You can lose the full amount invested. These products are intended for experienced investors with a high risk tolerance and a thorough understanding of leveraged products. Carefully assess your risk tolerance and investment horizon before trading.
