Trading of Warrants and
Structured Products
Disclaimer
• The content of this presentation has been prepared for educational purposes only and
must not be distributed to the investing public in Hong Kong.
It does not constitute an invitation to enter into or offer to enter into an agreement to acquire, dispose of, subscribe for or underwrite securities. None of the information contained herein
constitutes a solicitation or recommendation for the purchase or sale of a financial instrument traded on Frankfurter Wertpapierbörse or the Open Market on Frankfurter Wertpapierbörse for the trading of structured products.
• Börse Frankfurt Zertifikate AG shall neither bear any liability for the correctness or completeness of said information, nor for damages arising from actions taken on the basis of information contained in this or any other publication produced by Börse Frankfurt Zertifikate AG .
• While aiming to achieve the highest possible accuracy in translations provided herein, Börse Frankfurt Zertifikate AG shall bear no liability for the correctness of the translations.
Agenda
1. Background
2. Products Types
3. Rules and Regulation
4. Trading Fee
5. Trading Model
§
Börse Frankfurt is Europe‘s leading exchange for structured products such as warrants, CBBCs and certificates (structured notes).§
The entity “Börse Frankfurt Zertifikate AG” is a100% affiliate of Deutsche Börse AG and is operating the segments for structured products in Frankfurt.
§
Börse Frankfurt Zertifikate AG is regulated by theExchange Supervisory Authority in Wiesbaden.
100%
FWB segment Structured Products
D/EU
Agent (partly) for FWB
Open Market
Börse Frankfurt Zertifikate AG
Company profile Börse Frankfurt
Germany (119) France (7) Spain (5) Italy (5) Ireland (4) United Kingdom (46) Sweden (1) Switzerland (9) Austria (13) Netherlands (17) Hungary (4) Czech Republic (1) Cyprus (1)
United Arab Emirates (1) Belgium (2)
Luxembourg (1)
Participants after migration to the Xetra technology
Bulgaria (2) Total: 239 Hongkong (1) Planning Stage: •Korea •Singapore
We bring warrants to Europe
-and beyond…
Possible benefits of trading at Börse Frankfurt
for brokers and banks in Asia
§
Due to the time shift: Extension of trading hours for your clients.§
Profit from European / US underlyings while these markets are open.§
Additional opportunities for business and revenues for brokers.§
Börse Frankfurt offers largest range of structured products worldwide (> 1,000,000 instruments), including more than 300,000 warrants, more than 150,000 CBBCs.§
Listing of instruments in multiple currencies§
Choice from more than 40 competing issuers: Low spreads especially for instruments on US indices, commodities and – naturally - European underlyings.Investment Products:
• for different market expectations and risk-taking, often used to enhance yields or buy (partial) downside protection
Leverage Products:
• for short-term investors who like to leverage rising or falling prices, high risk-taking, high risk of total loss, also used for hedging purposes
Plain Vanilla Warrants (291,872)
Knock-outs with Stop-Loss (R-Types) (CBBCs, 88,498)
Exotic Warrants (23,355)
Knock-outs without Stop-Loss (N-Types) (CBBCs, 126,395) Bonus/Partial-Protection Certificates (195,641) Discount Certificates (185,856) Reverse Convertibles (46,081) Index/Tracker Certificates (3,304) Other Certificates (> 100,000)
Huge selection – for all market expectations
In total, more than 1,000,000* products are tradeable at Börse Frankfurt.
International Indices - Euro Stoxx 50 (45k) - DAX (> 100,000) - SMI (> 400) - ... - Euro Stoxx 50 (45k) - DAX (> 100,000) - SMI (> 400) - ... International Stocks - Facebook (> 3,000) - Apple (> 7,000) - Google (> 3,000) - Intel Corp. (> 1,500) - … - Facebook (> 3,000) - Apple (> 7,000) - Google (> 3,000) - Intel Corp. (> 1,500) - … Commodities - Gold (> 10,000) - Crude Oil (> 4,000) - Silver (> 10,000) - … - Gold (> 10,000) - Crude Oil (> 4,000) - Silver (> 10,000) - … Currencies - EUR/USD (> 10,000) - EUR/JPY (> 5,000) - USD/JPY (> 4,000) - USD/CNY (> 100) - … - EUR/USD (> 10,000) - EUR/JPY (> 5,000) - USD/JPY (> 4,000) - USD/CNY (> 100) - … - NASDAQ100 (> 10k) - Dow Jones (> 7k) - S&P 500 (> 9,000) - ... - NASDAQ100 (> 10k) - Dow Jones (> 7k) - S&P 500 (> 9,000) - ... - SAP (> 8,000) - Volkswagen (> 13k) - Royal Dutch (> 1k) - Microsoft (> 1k) - … - SAP (> 8,000) - Volkswagen (> 13k) - Royal Dutch (> 1k) - Microsoft (> 1k) - … - Platinum (> 1,000) - Palladium (> 1,000) - Soft Commodities - … - Platinum (> 1,000) - Palladium (> 1,000) - Soft Commodities - … - EUR/GBP (> 2,500) - EUR/CHF (> 3,500) - EUR/AUD (> 800) - GBP/JPY (> 100) - … - EUR/GBP (> 2,500) - EUR/CHF (> 3,500) - EUR/AUD (> 800) - GBP/JPY (> 100) - … Trading Currencies available today: EUR HKD SGD USD CHF SEK GBP CZK HUF PLN DKK AUD CAD NOK Since June 2013: CNY NZD TRY RUB Trading Currencies available today: EUR HKD SGD USD CHF SEK GBP CZK HUF PLN DKK AUD CAD NOK Since June 2013: CNY NZD TRY RUB Asian underlyings - CNOOC - China Life - China Mobile - Petrochina - ... - CNOOC - China Life - China Mobile - Petrochina - ... - HSI (> 2,000) - HSCEI (> 1,000) - Nikkei 225 (> 5,000) - KOSPI 200 Index - ... - HSI (> 2,000) - HSCEI (> 1,000) - Nikkei 225 (> 5,000) - KOSPI 200 Index - ...
German Blue Chips ETFs (> 1,000)
German Blue Chips
International stocks (> 9,000), including US stocks such as Apple, Microsoft, Facebook, …
ETFs (> 1,000)
German Mid and Small Caps Mutual Funds (> 2,500) Bonds (> 20,000) Xetra Frankfurt (4.00pm – 11.30pm) Xetra Frankfurt 2 (3.00pm – 03.00am)
Beyond structured products…
200.000 400.000 600.000 800.000 1.000.000 1.200.000
Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July
2007 2008 2009 2010 2011 2012 2013
Number of listed Investment- and Leverage-Products
Investment products Leverage products 12-Months-Moving-Average 12-Months-Moving-Average-IP 12-Months-Moving-Average-LP
In total, more than 40 issuers have listed their Structured Products at Börse Frankfurt.
Our Best – Issuers trading within Premium Standards
Investors who mainly rely on financial advisors typically buy:
• Capital-guaranteed notes
(approx. 65% of open interest!) • Bonus Certificates
• Discount Certificates • Reverse Convertibles
Self-directed investors typically search for a suitable product on neutral websites
(financial portals, exchanges, …) and buy:
• Derivative Warrants • CBBCs • Index-/Tracker Certificates • Bonus Certificates • Discount Certificates • Reverse Convertibles
Germany: Two types of investors
Most popular investment products for self-directed investors in Germany:
(i) Bonus Certificates
(ii) Discount Certificates
(iii) Index Certificates
(iv) Reverse Convertibles
On our website for investors in Asia, www.warrants-exchange.net, we will only display derivative warrants, CBBCs and the four investment products listed above to reduce complexity and to avoid confusion.
Introduction:
0% Yield at maturity(%) spot level at maturity underlying bonus level below safety level Bonus Certificate
How can the issuer provide the bonus?
Theoretically, a Bonus Certificate consists of two components:
-a long position in a Zero-Strike Call -a long position in a Down-and-Out Put
The strike of the Down-and-Out Put is equal to the bonus level of the certificate, the knock-out level is equal to its safety level.
This combination guarantees the bonus to the investor, if the underlying is traded within the range between these two levels.
0%
If share X never trades at or below the safety level of 45 during the entire term of the certificate, the investor receives at least the amount of 8 per certificate (bonus level times multiplier) at maturity. 23% Yield at maturity(%) bonus level 80 spot level at maturity Bonus Certificate underlying below safety level 45
This equates to a yield of more than 23%.
Example of a Bonus Certificate Price of underlying X: 65
Multiplier: 0.1
Remaining term: 1.5 years Price of certificate: 6.5 Bonus level: 80
Safety level: 45
Scenario 1: If the underlying is traded within the
safety and bonus level before maturity
38% 0% 23% Yield at maturity(%) bonus level 80 spot level at maturity
The investor also benefits from price movements beyond the bonus level.
Bonus Certificate underlying below safety level 45
In this event he/she fully participates in the performance of the share, just as with a direct investment.
For example, if the stock is quoted at 90 at maturity, the investor will receive an
amount of 9 per certificate (share price times multiplier), a yield of 38%.
Example of a Bonus Certificate Price of underlying X: 65
Multiplier: 0.1
Remaining term: 1.5 years Price of certificate: 6.5 Bonus level: 80
Safety level: 45
Scenario 2: The stock is quoted above the bonus
level at maturity
90
-38%
Example of a Bonus Certificate Price of underlying X: 65
Multiplier: 0.1
Remaining term: 1.5 years Price of certificate: 6.5 Bonus level: 80
Safety level: 45
Scenario 3: The stock falls below the safety level
before maturity
Case 1:
If the share price drops to 40, the payoff value would become 4, a loss of 38%. Case 2:
If the share price rebounds back to 65 at maturity, the payoff value would become 65, the investor’s profit is 0.
0% Yield at maturity(%) bonus level 80 spot level at maturity Bonus Certificate underlying below safety level 40
If the safety level is hit or crossed before maturity, the market value of the stock at maturity (multiplied by the ratio) will be paid out.
65
Bonus Certificates - Benefits and Risks
Specific Benefits:
• Significant positive yields are possible - even if the underlying price stagnates or decreases slightly • Risk cushion against falling underlying prices • Unlimited participation in price gains, even if the
underlying price exceeds the bonus level
Specific Risks:
• Bonus Certificates are non-capital guaranteed products
• If safety level is touched or crossed during the lifetime of the certificate, the bonus mechanism as well as the risk cushion are lost
Suitable for investors who expect a flat or rising market
Alternative to a direct investment in a share or index
Come along with a risk cushion against falling underlying prices
A bonus will be paid as long as the
underlying price does not touch or break the safety level
Unlimited participation in price gains If the safety level is touched, the investor receives the current value of the underlying at maturity
How can the issuer provide that discount?
The theoretical construction behind a Discount Certificate is:
- a long position in a zero-strike call and - a short position in a call option on it.
With the money received through that sale and the dividend paid out by the underlying, the issuer finances your discount.
+100%
0%
Yield at maturity(%)
-100%
spot level at maturity cap price Discount Certificate purchase price of the certificate underlying Discount Certificates enable investors to purchase
an instrument at a discount compared to the current market price.
Discount Certificate The return of the
certificate is limited to the cap, even if the underlying
exceeds that level
cap 5.5 +100% 0% 22% Yield at maturity(%) -100%
spot level at maturity (price)
purchase price of the certificate 4.5 Example of a Discount Certificate
Underlying: Share X Price of underlying: 5.00 Multiplier: 1.0
Remaining term: 2 years
Price of certificate (incl. discount): 4.50 Cap (maximum amount): 5.50
Scenario 1: Stock is traded at or above the cap at
maturity
The investor receives the maximum amount of 5.50 for each certificate., a yield of 22%.
Example of a discount certificate Underlying: Share X
Price of underlying: 5.00 Multiplier: 1.0
Remaining term: 2 years
Price of certificate (incl. discount): 4.50 Cap (maximum amount): 5.50
Scenario 1: Stock is traded at or above the cap at
maturity
Discount Certificate cap price 5.5 +100% 0% 22% Yield at maturity(%) -100%spot level at maturity (price) purchase price of the certificate 4.5 Case 1 Case 1: Share price is between 5.5– 6.1
The performance of the Discount Certificate is still better than the yield with a direct investment.
underlying price of the underlying when the certificate was purchased 5 6.1
Case 2: Share price exceeds 6.1
The direct investment will outperform the Discount Certificate.
Case 2
Investment Products: Discount Certificates
Discount Certificate underlying The investor
receives the share’s value at maturity cap price 5.5 +100% 0% 11% Yield at maturity(%) -100%
spot level at maturity (Price) price of underlying when we bought the certificate 5 purchase price of the certificate 4.5 Example of a Discount Certificate
Underlying: Share X Price of underlying: 5.00 Multiplier: 1.0
Remaining term: 2 years
Price of certificate (incl. discount): 4.50 Cap (maximum amount): 5.50
Scenario 2: Stock is quoted below the cap at
maturity, but above the purchase price of the
certificate
For example, the underlying price is quoted at 5.00.
The investor has still made a profit of around 11%, while the direct investment would have produced a yield of 0%.
Example of a Discount Certificate Underlying: Share X
Price of underlying: 5.00 Multiplier: 1.0
Remaining term: 2 years
Price of certificate (incl. discount): 4.50 Cap (maximum amount): 5.50
Scenario 3: Stock is quoted below the purchase
price of the certificate at maturity
For example, the underlying price is quoted at 4.00.
Again, the investor will receive the value of the share. The investor thus loses 11%.
-20%
underlying
The loss on a direct investment, however, would have been 20%.
-11% price of the underlying when we bought the certificate 5 Discount Certificate The investor receives the share’s
value at maturity cap price 5.5 +100% 0% Yield at maturity(%) -100%
spot level at maturity (price)
purchase price of the
certificate 4.5
Investment Products: Discount Certificates
Specific Benefits:
Specific Risks:
• Opportunity to acquire an instrument at a discount compared to the underlying‘s market price
• Difference between the price of the underlying and the price of the certificate serves as risk cushion against falling share prices
• Investors can profit from falling implied volatility
• Discount Certificates are non-capital guaranteed products • Increasing volatility can lead to a falling price
• Gain is capped at a certain level Discount Certificates are especially suitable in
flat or slightly falling/ rising markets.
The profit is capped at a certain level. If the price of the underlying is equal to or greater than the cap level, investors receive a cash amount equal to the cap at maturity.
Key Features:
gain at maturity underlying price underlying Index Certificate
Suitable for investors who like to participate in a rising underlying price
Index Certificates replicate the performance of the underlying one-to-one
Often come along with an unlimited lifetime and hence have no predetermined maturity date
PAYOFF PROFILE OF INDEX CERTIFICATES PAYOFF PROFILE OF INDEX CERTIFICATES
Can also be used for tracking of commodity prices („Tracker Certificates“)
Example:
Index Y quotes at 6000 points Multiplier: 0.01
Price of Index Certificate : EUR 60
Scenario 1:
Index Y rises to 7000 points.
The value of the Index Certificate increases to EUR 70. 6000 7000 60€ 70€ value at maturity underlying price
Direct investment vs. Index Certificate
Scenario 2:
Index Y falls to 5000 points
The value of the certificate decreases to EUR 50. 6000 50€ 60€ value at maturity underlying price 5000 Example:
Index Y quotes at 6000 points Multiplier : 0.01
Price of Index certificate : EUR 60
Specific Benefits:
Easy way for tracking of the underlying performance. In case of a rising market, potential gains are not capped.
Cost-efficient form of an investment, often no management fee Easy way to diversify a portfolio across different markets / regions
Specific Risks:
No downside protection / risk cushion against falling prices An index certificate cannot outperform the underlying
Index Certificates are non-capital guaranteed products
Reverse Convertibles mix the typical features of bonds and shares. (zero coupon bond + short at-the-money put)
They bring a fixed return above the market interest rate over the course of the term. However, investors also participate in the performance of the underlying.
Beware, although the product pays a
coupon, this doesn’t mean its risk is similar to a traditional bond. It remains exposed to the price risk of the underlying!
Yield at maturity (%) Reverse Convertible underlying +100% 0% -100% spot level at maturity (Price)
Investment Products: Reverse Convertibles
Example of a Reverse Convertible Underlying: Share X
Price of underlying: 58
Price of reverse convertible: 100% Strike price: 58
Remaining term: 1 year Nominal amount: 10,000 Ratio: 1 : 172.41
Coupon rate: 12 % p. a.
Regardless of the performance of share X at maturity, the investor receives an annualized coupon payment of 12%. Yield at maturity (%) Reverse Convertible underlying strike price = purchase price 58 +100% 0% 12% -100% spot level at maturity (Price) If the underlying trades
below 51.04, it will offset its 12% coupon, resulting
in a negative yield.
51.04
Investment Products: Reverse Convertibles
Example of a Reverse Convertible Underlying: Share X
Price of underlying: 58
Price of reverse convertible: 100% Strike price: 58
Remaining term: 1 year Nominal amount: 10,000 Ratio: 1 : 172.41
Coupon rate: 12 % p. a.
If the share is traded at 50 at maturity,
the investor receives an annualized coupon payment of 12% + the current value of 172.41 shares X in cash.
Total payoff of Reverse Convertible: 9820.50 (loss 1.80%). The loss with a direct
investment would be 13.79%.
Yield at maturity (%)
If the underlying price falls below 51.04,it will
offset 12% coupon and the instrument will start
to lose Reverse Convertible underlying strike price = purchase price 58 +100% 0% 12% -100% spot level at maturity (price) 50
Specific Benefits:
Specific Risks: • Fixed coupon rate
• Investors can profit from falling volatility
• Reverse Convertibles are non-capital guaranteed products • Increasing volatility can lead to a falling price
• Gain is capped at a certain level They bring a fixed return above the market
interest rate over the course of the term.
The investor of a Reverse Convertible gives up upside potential of the underlying in exchange for a coupon.
Key features:
Suitable, if investors expect a stagnant or slightly rising equity market and would also like to
receive a fixed interest payment independent from the market.
Lot size required (minimum investment amount Reverse Convertibles
• Lot size required (minimum investment amount very often EUR 5,000 or EUR 10,000)
• Quotes are shown in percentages
• Instead of a discount, the coupon payment works as a cushion against falling underlying prices
• Affected by changes of implied volatility (short put)
Discount Certificates
• Usually, no lot size is required
• Quotes are shown as absolute values • Discount works as a cushion
• Affected by changes of implied volatility (short call)
What is the difference between
Some products exhibit a safety level feature. If the underlying asset touches this safety level, the payoff profile of the product may change significantly!
Most structured products do not offer any interest or dividend payments during their lifetime.
Limited term: An investment product‘s term is usually limited.
Issuer risk:
In case of payment difficulties or bankruptcy of the issuer, the invested capital is not protected. Most investment products contain derivative components. Prices are affected by several factors, such as changes of implied volatility, interest rates, expected dividends or remaining lifetime.
Please note that we cannot give an exhaustive description of all risks here. A more detailed view can be found in our brochure.
Most popular leverage products for self-directed investors in Germany:
(i) Derivative Warrants (since early 1990s)
(ii) CBBCs (“Knock-outs”, first products issued in 2002/2003)
Leverage Products in Germany
Open-Ended CBBCs (no premium, no maturity, 1:1 movement)
Most CBBCs exhibit a maturity of a few weeks to several months at the time of issue. Some CBBCs, however, are provided with an indefinite maturity (open-end). These products do not trade with a premium; their price therefore always corresponds to their intrinsic value.
The strike (financing level) and the call level are adjusted regularly so that the intrinsic value of the product changes slightly every day, even if the underlying price does not change. The intrinsic value of the instrument can therefore decrease over long holding periods, if the price of the underlying asset moves sideways.
“Worthless” CBBCs
After a call event, most issuers offer to buy back a CBBC from the investor at a price of 0.001.
Special features of CBBCs
Example
Index Level 3,000 points
Funding Level (Index Point)
Strike Price (Index Point) Stop-Loss Level (Index Point) Price of the no maturity bull (Euro) Issue Date 2,600 2,600 2,760 4
After one day 2,600 2,600.36 2,760 3.9964
After 30 days 2,600 2,610.68 2,760 3.8932
Adjustment Date 2,610.68 2,611.04 2,770 3.8896
In this example, we assume the index level remains unchanged. • Multiplier: 0.01
• Stop-loss level: At least 6% above the strike price on each adjustment date • Funding costs: 5% p.a. (initially around 0.36 index points per day)
Calculation of adjusted strike price = 2,600 x 5% / 365 = 0,36 index points
Open-end CBBCs
Funding costs may change over the lifetime.
Funding level, strike level and stop level change during the lifetime! (outdated data!) Always keep a sufficient distance between underlying price and stop level.
Open-ended CBBCs may not be suitable for long-term investments.
Be careful when using open-ended CBBCs !
Börse Frankfurt is subject to theExchange Supervisory Authority.
Trading at Börse Frankfurt is monitored by the Trading Surveillance Office on site. Office staff is provided by the Exchange Supervisory Authority.
Full pre- and post-trade transparency: Publication of realtime quotes and trades
Mandatory Liquidity Provider for every single product
Credit institutions and financial service providers are subject tosupervision by German federal authority (BAFin) or the local authority.
For products in currencies from the APAC region: Minimum credit ratingfor issuers if no recognized authority, minimum equity capital EUR 250 mn.
Mandatory quotation – continuously or upon request
To protect market participants, Börse Frankfurt has implemented a mistrade rule which allows cancellation of a trade which was executed at a price far off the market value.
The Market Supervision will start an investigation and may also consult outside experts who were not involved in the trade.
Mistrades happen rarely.
Both trading counterparties can apply for a mistradewithin 2 hours after the trade.
The decision of the exchange is binding for both counterparties.
Mistrade Rule
Pricing
Net incl. VAT
(German members only)
Range 0.095% 0.113%
Cap EUR 15.12 EUR 17.99 Order
Size Trading Fee
Cap EUR 15,12
EUR 15.916
Example: Order volume EUR 2,000
Trading Fee = EUR 2,000 x 0.095% = EUR 1.90
Please note that external settlement agents or execution agents may charge additional fees, making the trade more expensive!
• Issuers may choose the trading model (Issuer Trading Model or Specialist Trading Model) on ISIN level.
• There is exactly one Liquidity Provider (“Quote Provider”) per ISIN (generally the Issuer) and one Specialist (in the Specialist Trading Model).
• Currently, trading hours are from 9.00 a.m. to 8.00 p.m CET. Trading in single instruments outside the quality segment “Premium” may start later or terminate earlier.
• There is a distinction between the Trading Models (Issuer Model vs. Specialist Model) with respect to the fee scheme for Issuers. • There is no distinction between the Trading Models (Issuer Model vs. Specialist Model) with respect to marketing activities,
pricing for buyside clients and data distribution.
Specialist Trading Model
(STM)
Trading with Specialist
Issuer Trading Model
(ITM)
Fully electronic trading
Time
Pre-Trading Main-Trading Post-Trading
Auction
Issuer Trading Model
Price Determination Call Pre-Call Auto-Execution Price Determination Freeze Pre-Call
Specialist Trading Model
Auction Auction Auction
7.00 9.00 20.00 20.30
Continuous Auction with 1 up to n Auctions (number of auctions depends on the trading activities
of the respective instrument)
Auctions in the Specialist Trading Model
Pre-Trading Main-Trading Post-Trading
Auction
Issuer Trading Model
Price Determination Call Pre-Call Auto-Execution Price Determination Freeze Pre-Call
Specialist Trading Model
Auction Auction Auction
Time
7.00 9.00 20.00 20.30
Continuous Auction with 1 up to n Auctions (number of auctions depends on the trading activities
of the respective instrument)
Auctions in the Issuer Trading Model
Due to some semi-manual processes in the Specialist Trading Model, machine-generated order-entry in structured products is currently not allowed, and the exchange has set certain limits with respect to order entry.
The following order types are offered: -Market, Limit, Stop Market, Stop Limit
The following „intelligent“ order types are offered via the FIX interface: -Trailing Stop
-One-Cancels-Other
-Order-on-Event
Currently, only one issuer (Interactive Brokers Financial Products) uses the Issuer Trading Model. All other issuers list products in the Specialist Trading Model.
No CCP is involved in trades in structured products at Börse Frankfurt.
Trades in structured products are settled bilaterally between the trading counterparties.
Limitations and Order Types
Compare the products!
Quotes and spreads between different issuers may vary Do not look for the lowest absolute price!
The absolute price of a structured product heavily depends on the entitlement ratio (multiplier). A warrant with an extremely low absolute price is not necessarily the most attractive one.
Keep order sizes within the quote volumes provided! This helps to execute orders smoothly and quickly.
Check the trading currency!
Each product at Börse Frankfurt is traded in a certain currency. Don‘t mix them up! Always keep a safe distance to call levels / barrier levels!
This is particularly important for CBBCs and Bonus Certificates.
Some general tips for trading
•
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Disclaimer
• The content of this presentation has been prepared for educational purposes only and
must not be distributed to the investing public in Hong Kong.
It does not constitute an invitation to enter into or offer to enter into an agreement to acquire, dispose of, subscribe for or underwrite securities. None of the information contained herein
constitutes a solicitation or recommendation for the purchase or sale of a financial instrument traded on Frankfurter Wertpapierbörse or the Open Market on Frankfurter Wertpapierbörse for the trading of structured products.
• Börse Frankfurt Zertifikate AG shall neither bear any liability for the correctness or completeness of said information, nor for damages arising from actions taken on the basis of information contained in this or any other publication produced by Börse Frankfurt Zertifikate AG .
• While aiming to achieve the highest possible accuracy in translations provided herein, Börse Frankfurt Zertifikate AG shall bear no liability for the correctness of the translations.
