X18 Leverage Bull & Bear-Certificates are back!

X18 Leverage Bull & Bear-Certificates are back!

den 27 september 2017

In phase of stable market trends, Bull & Bear certificates make it possible to achieve disproportionately high profits. This rule is valid for bull markets as well as for bear markets. Depending on the market expectations, investors can choose to benefit from either a rise or decline in the price of the underlying reference instrument. The price performance is leveraged on a daily basis by a constant factor.

Hence, Bull & Bear certificates enable private investors to proactively put focus on specific stocks, indices or commodities and profit from special and individual market opportunities. Bull & Bear certificates set priorities in well diversified portfolios, which are constituted by ETFs, stocks and bonds. As markets are volatile, educated and risk conscious investors make use of these up and downs in financial markets and trade market opportunities with leverage.

A Bull-Certificate will gain in value along the positive price development of the underlying security. For example, a DAX-Index based X5 Bull-Certificate will gain five percent, in case the DAX-Index gains one percent. In the same situation, a X10 Bear-Certificate will yield a 10 percent gain. Whereas in the last two years, the Swedish Bull & Bear certificate market was limited to a leverage of X15. Now, Vontobel, the first issuer of Bull & Bear certificates with leverage X18 has issued a new palette of X18 certificates. Investors are now enabled to trade OMX and DAX Bull and Bear-Certificates with a leverage of X18.

Please note that higher leverage also means higher risk. The leverage works both ways, though. I.e. it also works if performance takes an unfavorable direction contrary to the market expectation. The opposite direction can be unfavorable, and so can fluctuating price movements when they are alternately rising and falling.

Please note that Bull and Bear Certificates do not deliver any current income such as interest or dividends. These products are not capital protected. Investors bear the risk of the issuer defaulting (issuer risk).



Important legal information


Legal notice

This information is in the sole responsibility of the guest author and does not necessarily represent the opinion of Bank Vontobel Europe AG or any other company of the Vontobel Group. The further development of the index or a company as well as its share price depends on a large number of company-, group- and sector-specific as well as economic factors. When forming his investment decision, each investor must take into account the risk of price losses. Please note that investing in these products will not generate ongoing income.


The products are not capitalprotected, in the worst case a total loss of the invested capital is possible. In the event of insolvency of the issuer and the guarantor, the investor bears the risk of a total loss of his investment. In any case, investors should note that past performance and / or analysts' opinions are no adequate indicator of future performance. The performance of the underlyings depends on a variety of economic, entrepreneurial and political factors that should be taken into account in the formation of a market expectation.

2022-11-26 19:12:50