Spreads

Much like a Call Warrant, Call Spreads provide the opportunity for enhanced returns as long as the Underlying Asset closes above the Lower Level at Expiry, with the maximum redemption value being capped at the difference between the Upper and Lower Levels.  Provided that the Underlying Asset closes above the Lower Level the payout per product at Expiry is simply the difference between the final value of the Underlying Asset and the Lower Level, up to the maximum redemption value.  The key difference is that unlike a Call Warrant where the upside is unlimited, the redemption value of a Call Spread is capped.   Because the potential return is capped, Call Spreads are cheaper than a Call Warrant. So if you expect a moderate rise in the Underlying Asset, a Call Spread could be more attractive.

 If your view is more defensive, Put Spreads can provide a way to protect your portfolio against a moderate fall in the value of the Underlying Asset. A Put Spread will generate an enhanced return based on how far the Underlying Asset closes below the Higher Level at Expiry. The potential redemption value this time is however capped at the difference between the Lower and Higher Levels, hence a capped return.

 If at Expiry the Underlying Asset is below the Lower Level in the case of a Call Spread, or above the Upper Level in the case of a Put Spread, the product will expire worthless. Capital is fully at risk.

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Intraday Perf = Intra-day performance from previous day's closing price.
+/- Spot = Performance of the underlying relative to the previous day's closing price.

Past performance is not a reliable indicator of future results. Future performance forecasts are not a reliable indicator of future performance. Gains or losses can be reduced or increased depending on the exchange rate and does not take into account charges, fees and charges incurred by any investor (e.g taxes, fees or other costs incurred by local regulations, brokerage fees or other fees levied by the financial intermediary). Before any investment, read the risk factors described in the prospectus available on this site.
Before commencing trading you should be comfortable that covered warrants are a suitable investment for you. In order to assist you with this assessment, please see the "Risk Warning".

version : 4.38.0-SNAPSHOT