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Securitized Derivatives is the collective name for Warrants and Certificates listed by an issuer on respective Nasdaq Nordic* market.
Within Warrants and Certificates at Nasdaq, you can find a broad range of products that offer investors investment opportunities with varying risk exposures and underlying assets.
The Warrants product range includes Plain Vanilla Warrants, Turbo Warrants, Mini Futures and Unlimited Turbo Warrants. The Certificates product range includes Leveraged Certificates, Tracker Certificates and other certificates.
*Nasdaq Nordic represents common offering by Nasdaq Copenhagen A/S, Nasdaq Helsinki Ltd and Nasdaq Stockholm AB.
Warrants
With warrants, you can trade with a limited amount of invested capital compared with buying the actual underlying asset.
Plain Vanilla Warrants
The underlying asset of a Warrant can be, for example, a share or an index. There is an inherent leverage in Warrants whereby the percentage movements in the price of the underlying are amplified.
Warrants come in two different types: Call Warrants and Put Warrants. Call Warrants give the investor the possibility of returns in a rising market and Put Warrants in a declining market.
Warrants have an expiry date on which the underlying price is compared with the strike price. For example, for a Call Warrant, if the underlying price is higher than the strike price on the expiry date, the Warrant has value. If the opposite is true, the Warrant expires worthless.
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The underlying asset of a Warrant can be, for example, a share or an index. There is an inherent leverage in Warrants whereby the percentage movements in the price of the underlying are amplified.
Warrants come in two different types: Call Warrants and Put Warrants. Call Warrants give the investor the possibility of returns in a rising market and Put Warrants in a declining market.Warrants have an expiry date on which the underlying price is compared with the strike price. For example, for a Call Warrant, if the underlying price is higher than the strike price on the expiry date, the Warrant has value. If the opposite is true, the Warrant expires worthless.
Turbo Warrants
Turbo Warrants are similar to Plain Vanilla Warrants, but they have a barrier level called a knock-out level. If the value of the underlying reaches this level during the lifetime of the instrument, the Turbo Warrant will expire prematurely.
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Turbo Warrants are similar to Plain Vanilla Warrants, but they have a barrier level called a knock-out level. If the value of the underlying reaches this level during the lifetime of the instrument, the Turbo Warrant will expire prematurely.
Mini Futures
The underlying asset of a Mini Future can be, for example, a share, an index, a currency pair or a commodity.
Mini Futures come in two different types, Mini Long and Mini Short. For example, for a Mini Short, if the underlying price falls, the Mini Future increases in value. For Mini Long, the opposite is true.
Similar to Turbo Warrants, Mini Futures have an inbuilt Stop-Loss level. This means that the investor cannot lose more than the invested amount. The Stop-Loss level is adjusted regularly during the lifetime of the instrument.
In addition to the Stop-Loss, a Mini Future has a so-called Financing Level that determines the Leverage Level of the instrument. This Financing Level changes on a daily basis depending on the development of the underlying asset and is relevant for determining the value of the instrument. The Financing Level is the loan component that makes up the difference between the invested capital and the price of the underlying. For example, the higher the Financing Level of a Mini Long compared to the price of the underlying, the higher the leverage effect.
For Mini Futures, the instrument’s Stop-Loss Level differs from the Financing level. If the Stop-Loss Level is reached on a particular trading day, the issuer calculates the value at expiry for the instrument and may offer buy-back for the investors for the remainder of the trading day.
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The underlying asset of a Mini Future can be, for example, a share, an index, a currency pair or a commodity.
Mini Futures come in two different types, Mini Long and Mini Short. For example, for a Mini Short, if the underlying price falls, the Mini Future increases in value. For Mini Long, the opposite is true.
Similar to Turbo Warrants, Mini Futures have an inbuilt Stop-Loss level. This means that the investor cannot lose more than the invested amount. The Stop-Loss level is adjusted regularly during the lifetime of the instrument.
In addition to the Stop-Loss, a Mini Future has a so-called Financing Level that determines the Leverage Level of the instrument. This Financing Level changes on a daily basis depending on the development of the underlying asset and is relevant for determining the value of the instrument. The Financing Level is the loan component that makes up the difference between the invested capital and the price of the underlying. For example, the higher the Financing Level of a Mini Long compared to the price of the underlying, the higher the leverage effect.
For Mini Futures, the instrument’s Stop-Loss Level differs from the Financing level. If the Stop-Loss Level is reached on a particular trading day, the issuer calculates the value at expiry for the instrument and may offer buy-back for the investors for the remainder of the trading day.
Unlimited Turbo Warrants
Unlimited Turbo Warrants are similar to Mini Futures. However, Unlimited Turbos have their Stop-Loss Level aligned with the Financing Level. If the Stop-Loss Level is breached, the instrument will expire without value. Unlimited Turbos don’t have an end-date and their leverage effect is higher than that of Mini Futures.
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Unlimited Turbo Warrants are similar to Mini Futures. However, Unlimited Turbos have their Stop-Loss Level aligned with the Financing Level. If the Stop-Loss Level is breached, the instrument will expire without value. Unlimited Turbos don’t have an end-date and their leverage effect is higher than that of Mini Futures.
Certificates
Different types of Certificates can be issued and listed on Nasdaq’s Nordic markets. Tracker Certificates and Leverage Certificates are the two most popular Certificate categories but other Certificates can also be listed.
Tracker Certificates
A Tracker Certificate reflects the change in value of the underlying asset’s price movement 1:1.
The underlying asset can be a share, bond, a commodity, currency or combination of different underlying assets. A Tracker Certificate usually has a long maturity and symmetric return that follows the underlying price movement 1:1.
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A Tracker Certificate reflects the change in value of the underlying asset’s price movement 1:1.The underlying asset can be a share, bond, a commodity, currency or combination of different underlying assets. A Tracker Certificate usually has a long maturity and symmetric return that follows the underlying price movement 1:1.
Leverage Certificates
A Leverage Certificate reflects the change in the value of the underlying asset with leverage.
The underlying asset can be a share, bond, commodity, currency or combination of different underlying assets. Leverage Certificates usually have a long maturity with constant leverage that is rebalanced on a daily basis. Leverage Certificates give the possibility of returns in rising (referred to as "bull") and falling markets (referred to as "bear").
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A Leverage Certificate reflects the change in the value of the underlying asset with leverage.The underlying asset can be a share, bond, commodity, currency or combination of different underlying assets. Leverage Certificates usually have a long maturity with constant leverage that is rebalanced on a daily basis. Leverage Certificates give the possibility of returns in rising (referred to as "bull") and falling markets (referred to as "bear").
Other Certificates
Other types of certificates such as Bonus, Booster, Discount and Spread Certificates may also be listed by issuers on Nasdaq's Nordic markets.
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Other types of certificates such as Bonus, Booster, Discount and Spread Certificates may also be listed by issuers on Nasdaq's Nordic markets.
More information on product characteristics as well as educational content may be available from the respective brokers.
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More information on product characteristics as well as educational content may be available from the respective brokers.
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Support
Contact Us |
Phone and Email |
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|
Helena Wedin, Head of Business Development of ETF and ETP |
+46 8 405 6170 |
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Contact Us
Phone and Email
Helena Wedin, Head of Business Development of ETF and ETP
+46 8 405 6170