DAX® Index & Vontobel Knock-Out Warrants (Unlimited Turbos)

DAX® Index & Vontobel Knock-Out Warrants (Unlimited Turbos)

27 July 2017

Achieve Maximum Results with Minimal Investment

Leverage products generally allow you to participate in a number of underlying reference assets otherwise difficult to access. The DAX® Index is among the most traded underlying reference assets at the Nordic Growth Market (the Nordic Derivatives Exchange Finland, NDX) in 2017 year to date (source: NGM). The equity index is composed of the 30 largest German companies traded on the Frankfurt Stock Exchange and the companies represent over 80 different countries. Many of the market participants are international and most of the companies included in the DAX® Index are also traded in the U.S., which makes the index responsive to U.S. market trends as well as global market influences.

The product category Knock-Out Warrants is popular among Finnish customers trading the DAX® Index (source: NGM). Knock-Out Warrants combine the features of certificates without limitations to maturity and the leverage effect of warrants. Investors only need to commit a small investment to participate on the leveraged performance of the underlying reference asset to disproportionately participate on the positive and negative price fluctuations. In contrast to Mini Futures, the strike price and barrier is equal, a structure that enables a higher leverage. The daily adjustments of the strike price and barrier, according to the finance spread, allows for an open end-date construction to trade for short-term, mid-term as well as longer-term positions.


Product Features

If the barrier that Knock-Out Warrants are featured with is breached, the total invested capital will be lost, thus the investment is not capital protected. Compared to Futures and Options, as well as CFDs, the products are however not subject to margin calls for additional financial cover.

Due to the leverage, the investor has a theoretical unlimited upside participation but also has to face on the downside the risk of a total loss. A Barrier Event occurs if the price of the underlying reference asset touches or falls below (in the case of a Knock-Out Warrant Long ) or rises above (in the case of a Knock-Out Warrant Short) the barrier during the observation period. In case of a Barrier Breach, the Knock-Out Warrant expires worthless immediately. Due to the possibility of a Barrier Event and the higher degree of leverage involved, Knock-Out Warrants are generally considered riskier than other types of warrants.

Please keep in mind, that these products are not suitable for all type of investors. Knock-Out Warrants are complex financial instruments and require a good understanding for the underlying market and the product specific conditions and characteristics. When investing in Knock-Out Warrants, there is a risk of losing your total invested amount. Please, consider among other risks; liquidity-, issuer-, market- and currency risk in your analysis when trading leverage products. Investors are responsible for reviewing all risk factors belonging to the products before investing, which are enclosed in the Base Prospectus and Final Terms & Conditions at the Vontobel website.

Read more about Knock-Out Warrants and Knock-Out Warrants on DAX® Index



This information does not constitute a financial analysis, but product advertisement. Thus it does not meet the legal requirements to ensure the impartiality of financial analysis and is not subject to trade prohibition before the publication of a financial analysis.

For detailed information, particularly regarding the structure and the risks associated with an investment in the derivative financial instruments, prospective investors should read the Base Prospectus, which is available together with the Final Terms and any supplement to the Base Prospectus in electronic form on the issuer’s website: http://certificates.vontobel.com. Additionally, the Base Prospectus, any supplements to the Base Prospectus and the Final Terms are available in printed form, free of charge, at the registered office of the issuer: Vontobel Financial Products GmbH, Bockenheimer Landstrasse 24, 60323 Frankfurt am Main, Germany.

Investors should consider the applicable selling restrictions.

Companies of the Vontobel group may directly or indirectly pay commissions in varying amounts to third parties (e.g. brokers) in connection with the public offer and the distribution of the derivative financial instruments. Further information is available upon request from your distribution partner.

Without permission, this product advertisement may not be reproduced or redistributed.

02/10/2022 17:33:41