Variable Leverage

Long

Commercial names
Turbo Long, Mini Future long

Characteristics:

  • Full replication of the underlying asset’s performance with a non-constant leverage
  • Stop loss

Return profiles 

Graph

Maturity1 - 10 years
Inverstment horizonshort/mid term
Aimto profit from the underlying asset's positive performances, amplifying gains through a leverage
Strategiabullish(at issue and during life of product)
Capital protection at maturity/Riskno protection

Learn more

Investment certificates are financial products characterized by a number of features. They may simply replicate the underlying asset’s upward movements or downward movements, or they may be structured so as to implement more sophisticated strategies, which may include total or conditional capital protection against bad performances of the underlying asset (protection component).
Some certificates’ characteristics may also allow the owners to obtain proceeds during the life of the certificate, under condition that specific events take place (income component). A premium may be paid at maturity under form of additional proceeds in case the underlying asset’s price does not drop under the barrier (this is the case, for example, of bonus certificates).
The return on investment in some typologies of certificates may be determined by both the changes in the underlying asset’s price and the absence of such price movements for a timespan shorter than the life of the contract (early reimbursement component). These certificates pay a sort of premium for early redemption in case the underlying asset’s price is above a certain level on pre-arranged dates.
Moreover, some certificates feature an additional element, useful in periods of strong fluctuations of exchange rates – a protection against unfavourable changes in currency value. Products offering such protection, called “Quantum”, make it possible to invest in underlying asset’s denominated in a foreign currency avoiding exposure to the risks linked to exchange rates.

Features

The certificates’ payoff characteristics imply the following components: participation to upward movements in the underlying asset’s price.

Performance drivers

Reactivity of the certificates' prices to change in key variables.
VariablesIssueBarrier**Life residual***
upgreen Underlying asset's pricefreccia-su.pngfreccia-su.pngfreccia-su.png
upgreen Volatilitybarbarbar
upgreen Time*barbarbar
upgreen Interest ratesdown arrowdown arrowdown arrow
upgreen Dividendsdown arrowdown arrowbar
* With "Time" we mean the "passing of time", so the the approaching of natural certificate's expiration date.
** The barrier is not present for this type of certificate
***2 months of life residual, underlying's price near to the strike and dividends payment are not expected
Short

Commercial name
Turbo Short, Mini Future Short

Characteristics

  • Full replication of the underlying asset’s performance with a non-constant leverage
  • Stop loss

Return profiles 

Graph

Maturity1 - 10 years
Investment horizonshort/mid term
Aimto profit from the underlying asset's negative performances, amplyfing gains through a leverage
Strategybearish leverage
Capital protection at maturity/Riskno protection

Learn more

Investment certificates are financial products characterized by a number of features. They may simply replicate the underlying asset’s upward movements or downward movements, or they may be structured so as to implement more sophisticated strategies, which may include total or conditional capital protection against bad performances of the underlying asset (protection component).
Some certificates’ characteristics may also allow the owners to obtain proceeds during the life of the certificate, under condition that specific events take place (income component). A premium may be paid at maturity under form of additional proceeds in case the underlying asset’s price does not drop under the barrier (this is the case, for example, of bonus certificates).
The return on investment in some typologies of certificates may be determined by both the changes in the underlying asset’s price and the absence of such price movements for a timespan shorter than the life of the contract (early reimbursement component). These certificates pay a sort of premium for early redemption in case the underlying asset’s price is above a certain level on pre-arranged dates.
Moreover, some certificates feature an additional element, useful in periods of strong fluctuations of exchange rates – a protection against unfavourable changes in currency value. Products offering such protection, called “Quantum”, make it possible to invest in underlying asset’s denominated in a foreign currency avoiding exposure to the risks linked to exchange rates.

Features

The certificates’ payoff characteristics imply the following components: participation to downward movements in the underlying asset’s price


Performance drivers
 
Reactivity of the certificates' prices to change in key variables.
VariablesIssueBarrier**Life residual***
upgreen Underlying asset's pricedown arrowdown arrowdown arrow
upgreen Volatilitybarbarbar
upgreen Time*barbarbar
upgreen Interest ratesbarbarbar
upgreen Dividendsdown arrowdown arrowbar
* With "Time" we mean the "passing of time", so the the approaching of natural certificate's expiration date.
** The barrier is not present for this type of certificate
***2 months of life residual, underlying's price near to the strike and dividends payment are not expected