- Your receive an attractive bonus payment at the end of maturity even in the case of stable or falling prices as long as the price of the underlying has not fallen to or below the barrier (“sideways yield”).
- The barrier offers partial protection to falling prices (risk buffer).
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Once the barrier is reached the claim on bonus yield expires (see Barrier reached YES/NO in General attributes).
- The return may be capped.
- If the price of the underlying falls to or below the barrier, losses are possible.
- Between issue date and maturity, price fluctuations are possible, which means that the sale of the bonus certificates prior to maturity may result in a loss.
- In case that this is not a quanto certificate or the certificate is not secured against currency risk, the performance of the certificate is affected positively or negatively by the trend of the currency exchange rate between the currency of the certificate (CZK) and the currency in which the underlying asset is traded. If CZK strengthens the price of the certificate falls and if CZK weakens the price of the certificate rises.
- In case that this is a quanto certificate, the certificate is secured against currency risk. The performance of the certificate is not affected by the trend of the currency exchange rate between the currency of the certificate (CZK) and the currency in which the underlying asset is traded.
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