What applies to share, index, commodity Turbo open end certificates:
• If the price of the underlying asset rises, the price of TURBO LONG/SHORT rises/falls depending on the size of the leverage.
• If at the time of the purchase of the TURBO LONG certificate the leverage is 10 and the underlying asset increases by 1%, the price of the certificate in the currency of the underlying asset increases by about 10%.
• TURBO LONG/SHORT certificates have a fixed realisation price (so-called Strike value) and knock-out barrier (long/short). The Strike value and knock-out barrier are continuously regulated by daily financing costs. The price of the certificate does not contain the financing costs.
• The actual value of the certificate is the difference between the price of the underlying asset and the Strike value (TURBO LONG) or the difference between the Strike value and price of the underlying asset (TURBO SHORT).
• What applies to share Turbo certificates is that the payout of the dividend of the underlying share has almost no effect on the certificate price. On the so-called ex-dividend date, the price of the share falls (i.e. of the underlying asset of the certificate) by the level of the dividend and the Strike value and knock-out barrier also fall by the level of the dividend.
• As soon as the price of the underlying asset reaches the pre-set barrier (long barrier/short barrier, or “knock-out barrier”), TURBO LONG/SHORT certificates become worthless or only the residual value can be paid out to the holder.
What applies to currency Turbo certificates with a fixed maturity date is:
• If the price of the underlying asset rises, the price of TURBO LONG/SHORT rises/falls depending on the size of the leverage.
• The current price of the currency certificate is affected not just by the spot price of the underlying asset, but also by the change in interest rates and the volatility of the exchange rate.
• TURBO LONG/SHORT certificates have a fixed realisation price (so-called Strike value) and knock-out barrier (long/short), which are invariable from the date of issue until the maturity of the product, or until the knock-out is performed. The financing costs are included in one amount in the price of the certificate.
• The actual value of the certificate at maturity is the difference between the price of the underlying asset and the Strike value (TURBO LONG) or the difference between the Strike value and the price of the underlying asset (TURBO SHORT).
As soon as the price of the underlying asset reaches the pre-set barrier (long barrier/short barrier, or the “knock-out barrier”), TURBO LONG/SHORT certificates become worthless or only the residual value can be paid out to the holder.