Exchange-Traded Products
Exchange-traded products (ETPs) are securities traded directly on the stock exchange, similar to regular shares. They typically track the performance of an underlying asset, such as an index, a commodity, or a basket of stocks.
Common types of exchange-traded products include:
- Bull and Bear Certificates: Leveraged products that increase in value when the underlying asset rises (Bull) or falls (Bear).
- Exchange-Traded Funds (ETFs): Funds traded in real time on the stock exchange, often passively tracking an index.
- Warrants: Derivative securities offering the right to buy or sell an asset at a predetermined price.
- Fixed Interest Certificates: Products providing exposure to interest rate movements.
Investing involves risk.
Product Characteristics
Exchange-traded products offer diverse features to suit different investment strategies:
- Market Direction: Products that profit in rising markets, and inverse products that profit in falling markets.
- Leverage: The option to amplify returns (and risks) through leveraged multipliers.
- Term Structure: Some products have a fixed maturity date, while others have no predefined end date (open-ended).
Important Information Before Investing
Before trading exchange-traded products, carefully review the relevant product prospectuses and final terms. It is essential to understand the specific risks associated with leverage, compound interest effects, and the potential for total capital loss.
Past performance is not a guarantee of future returns. The value of your investment can both increase and decrease, and it is not certain that you will recover the amount invested.
