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Tradeable Securities

Leverage Products

Leverage products allow investors to participate to a disproportionately high degree in the performance of the underlying security while themselves putting little money down. The leverage effect means that the risk attached to these products is correspondingly higher than that of a direct investment. Leverage products are thus suitable only for investors with a high risk profile.

Capital Protection Products

A capital protection product guarantees the investor a certain minimum repayment (usually 100%) of the invested amount at the end of its term. It should be noted, however, that the price calculated during the term of the derivative may be below the capital protection level. Depending on how they are structured, the upside potential offered by capital protection products may be either capped or unlimited.

Yield-enhancement Products

Yield-enhancement products offer investors the chance of a higher yield than they would earn on a direct investment in the underlying security when markets are moving slightly higher/lower or trending sideways. Examples here include common instruments such as discount certificates, reverse convertibles and barrier reverse convertibles.

Participation Products

Participation products generally combine a certain number of defined individual securities (a basket) or an index into a single security. Participation products often fluctuate in a 1:1 relationship to the underlying security (delta =1). At maturity, the closing index value or closing price of the basket is paid out. As a rule, certificates offer an opportunity to achieve broad risk diversification even with smaller investment amounts, while also keeping administrative costs low.

Further information on derivative products listed on the SIX Swiss Exchange can be found on the SIX Structured Products Exchange Ltd Website.