Bid Ask | ||||||
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/product/detail/index/isin/CH0501616715 50161671 | Long Factor Certificate | SMI PR Index | 25x | 0.012302 | CHF | 5.305.35 |
/product/detail/index/isin/CH0499190640 49919064L25SIU | Long Factor Certificate | SMI PR Index | 25x | 0.016208 | CHF | 6.977.07 |
/product/detail/index/isin/CH0499190699 49919069S25SIU | Short Factor Certificate | SMI PR Index | 25x | 0.001463 | CHF | 0.590.60 |
/product/detail/index/isin/CH0513462876 51346287 | Short Factor Certificate | S&P 500 Index | 25x | 0.030985 | CHF | 3.903.93 |
/product/detail/index/isin/CH0512544146 51254414 | Short Factor Certificate | SMI PR Index | 25x | 0.010314 | CHF | 4.144.19 |
/product/detail/index/isin/CH0501557638 50155763 | Long Factor Certificate | DAX | 24x | 0.008167 | CHF | 4.864.87 |
/product/detail/index/isin/CH0501557729 50155772 | Long Factor Certificate | Euro STOXX 50 Price Index | 24x | 0.017817 | CHF | 2.922.94 |
/product/detail/index/isin/CH0501557281 50155728 | Short Factor Certificate | Euro STOXX 50 Price Index | 24x | 0.00362 | CHF | 0.630.64 |
/product/detail/index/isin/CH0501557372 50155737 | Short Factor Certificate | Dow Jones Industrial Average Index | 24x | 0.000817 | CHF | 0.970.98 |
/product/detail/index/isin/CH0501557810 50155781 | Long Factor Certificate | Dow Jones Industrial Average Index | 24x | 0.004439 | CHF | 5.045.05 |
/product/detail/index/isin/CH0501557901 50155790 | Long Factor Certificate | NASDAQ 100 Index | 24x | 0.019284 | CHF | 6.496.51 |
/product/detail/index/isin/CH0501557554 50155755 | Short Factor Certificate | S&P 500 Index | 24x | 0.005738 | CHF | 0.760.77 |
/product/detail/index/isin/CH0501557992 50155799 | Long Factor Certificate | S&P 500 Index | 24x | 0.051802 | CHF | 6.626.67 |
/product/detail/index/isin/CH0506048385 50604838 | Short Factor Certificate | DAX | 24x | 0.002534 | CHF | 1.561.57 |
/product/detail/index/isin/CH0508410666 50841066 | Short Factor Certificate | Euro STOXX 50 Price Index | 24x | 0.017859 | CHF | 3.083.10 |
/product/detail/index/isin/CH0508410708 50841070 | Short Factor Certificate | NASDAQ 100 Index | 24x | 0.00642 | CHF | 2.272.30 |
/product/detail/index/isin/CH0501616707 50161670 | Long Factor Certificate | SMI PR Index | 24x | 0.012249 | CHF | 5.495.54 |
/product/detail/index/isin/CH0501615790 50161579 | Short Factor Certificate | SMI PR Index | 24x | 0.001982 | CHF | 0.830.84 |
/product/detail/index/isin/CH0513462868 51346286 | Short Factor Certificate | S&P 500 Index | 24x | 0.030101 | CHF | 3.943.97 |
/product/detail/index/isin/CH0470829927 47082992 | Long Factor Certificate | NASDAQ 100 Index | 23x | 0.000335 | CHF | 0.1270.128 |
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.