Bid Ask | ||||||
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/product/detail/index/isin/CH0449359733 44935973 | Short Factor Certificate | SMI PR Index | 4x | 0.002894 | CHF | 7.5437.553 |
/product/detail/index/isin/CH0449359741 44935974 | Short Factor Certificate | SMI PR Index | 6x | 0.001576 | CHF | 2.7312.741 |
/product/detail/index/isin/CH0449359758 44935975 | Short Factor Certificate | SMI PR Index | 8x | 0.00081 | CHF | 1.051.055 |
/product/detail/index/isin/CH0449359774 44935977UCFJIU | Short Factor Certificate | UBS Group AG | 5x | 1.545707 | CHF | 3.593.62 |
/product/detail/index/isin/CH0449359782 44935978DJIGIU | Short Factor Certificate | UBS Group AG | 6x | 1.307656 | CHF | 2.512.54 |
/product/detail/index/isin/CH0449359790 44935979DJIHJU | Short Factor Certificate | UBS Group AG | 8x | 0.749018 | CHF | 1.071.08 |
/product/detail/index/isin/CH0449359808 44935980DJILKU | Short Factor Certificate | UBS Group AG | 10x | 0.321277 | CHF | 0.380.39 |
/product/detail/index/isin/CH0449359816 44935981OJIWLU | Short Factor Certificate | Credit Suisse | 5x | 0.499813 | CHF | 1.251.26 |
/product/detail/index/isin/CH0449359824 44935982OJIWMU | Short Factor Certificate | Credit Suisse | 6x | 0.327822 | CHF | 0.680.69 |
/product/detail/index/isin/CH0449359832 44935983OJIWOU | Short Factor Certificate | Credit Suisse | 8x | 0.109168 | CHF | 0.160.17 |
/product/detail/index/isin/CH0449359857 44935985BJIWQU | Short Factor Certificate | Zurich Insurance | 5x | 0.01458 | CHF | 1.131.14 |
/product/detail/index/isin/CH0449359865 44935986BJIWRU | Short Factor Certificate | Zurich Insurance | 6x | 0.01066 | CHF | 0.680.69 |
/product/detail/index/isin/CH0449359899 44935989OJIUUU | Short Factor Certificate | Roche | 5x | 0.03118 | CHF | 1.921.93 |
/product/detail/index/isin/CH0449359907 44935990OJIUVU | Short Factor Certificate | Roche | 6x | 0.024878 | CHF | 1.281.29 |
/product/detail/index/isin/CH0449359915 44935991NDBAAU | Short Factor Certificate | Roche | 8x | 0.013845 | CHF | 0.530.54 |
/product/detail/index/isin/CH0449359931 44935993SMIAUU | Long Factor Certificate | The Swatch Grp Bearer | 5x | 0.094019 | CHF | 5.195.29 |
/product/detail/index/isin/CH0449359949 44935994OBIOUU | Long Factor Certificate | The Swatch Grp Bearer | 6x | 0.079947 | CHF | 3.693.74 |
/product/detail/index/isin/CH0449359956 44935995OCBRGU | Long Factor Certificate | The Swatch Grp Bearer | 8x | 0.043112 | CHF | 1.491.52 |
/product/detail/index/isin/CH0449359972 44935997OCBNHU | Long Factor Certificate | UBS Group AG | 5x | 3.059018 | CHF | 7.467.51 |
/product/detail/index/isin/CH0449359980 44935998OCBGQU | Long Factor Certificate | UBS Group AG | 6x | 2.963234 | CHF | 6.046.09 |
UBS Factor Certificates
UBS Factor Certificates enable investors who are willing to take risks to participate disproportionately in the price performance of an underlying asset (e.g. equities, indices, commodities or currency pairs). The Long Factor Certificate targets rising prices, while the Short Factor Certificate converts falling prices into gains. Unlike other leverage products, such as warrants or mini-futures, the leverage factor remains constant. For example, a factor certificate (10x long) mirrors the daily performance of the underlying asset with a constant leverage of 10. This manner of functioning makes it possible to adjust the strike price and conversion ratio on a daily basis.
Of course, the product loses value disproportionately if the underlying asset moves in an adverse direction. As soon as the price of the underlying asset reaches the strike price or falls short of it (Long Factor Certificate) or exceeds it (Short Factor Certificate), a knock-out event occurs. In this case, the product expires without value with immediate effect and the holder suffers a total loss. However, there is no obligation to make margin calls, as is usual in forward transactions, for example.
In order to reduce the risk of loss in highly volatile market phases, the Factor Certificate includes a reset mechanism. This can be used in the event of strong price fluctuations in the course of a trading day (intraday). The crucial aspect is the reset barrier. It lies above the strike price in the case of the Long Factor Certificate, while it is positioned below the strike price for the short variant. If the underlying asset touches or breaches this reset barrier, the strike price is adjusted: downwards for a Long Factor Certificate or upwards in the case of a Short Factor Certificate. The conversion ratio is recalculated at the same time. In this way, a new trading day begins in simulation, in which the Factor Certificate starts with a likewise lower barrier (long) or higher barrier (short). However, this does not avert the risk of a knock-out.
Unlike warrants, volatility has hardly any impact on the performance of Factor Certificates. A further distinguishing feature is the unlimited duration.
The fact that the leverage effect of the Factor Certificate applies on a daily basis results in path dependency. If the underlying asset of a Long Factor Certificate trends upward or that of a Short Factor Certificate trends downward, the investor can benefit disproportionately and obtain higher returns, depending on the selected leverage. If, on the other hand, the underlying asset moves in a sideways market, investors are at risk of incurring losses. This is especially the case if the underlying asset floats around its starting price for a relatively long period of time.
Investors must also take the issuer risk into consideration, since loss of the invested capital could occur if UBS AG becomes insolvent, regardless of the performance of the underlying asset and other market parameters.